Is ADM's bid for GrainCorp in trouble?

Archer Daniels Midland (ADM) will find out whether it has received approval from Australia’s Foreign Investment Review Board for its planned A$3B acquisition of GrainCorp (GRCLF.PK) in about two months, Australia’s treasurer says.

GrainCorp shares closed today at A$12.35/share, a 6.4% discount to the A$13.20 shareholders would receive under ADM’s buyout offer, perhaps an indicator that investors are skeptical the deal will be completed.

Sizable deals that have been blocked by Australia’s FIRB in the past include the Singapore Exchange's proposed 2011 A$8.4B takeover of the Australian Stock Exchange and Shell's 2001 attempt to buy Woodside Petroleum for A$10B.

Separately, Illinois Gov. Pat Quinn says he will veto any legislation with special tax incentives for ADM to keep its global headquarters in the state until legislators approve a fix for the pension crisis.

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Comments (1)
  • movies555
    , contributor
    Comments (1453) | Send Message
    Oh please please please please please please let this not go through. I'd back up the truck to Graincorp if this deal didn't go through. Owned it before the purchase by ADM and almost wish I could have kept owning it.
    4 Oct 2013, 07:56 PM Reply Like
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