Archer Daniels Wants a Stake in IPO Metabolix

Includes: ADM, YTEN
by: Lon Juricic

In a 13D filing on recent IPO Metabolix Inc. (MBLX), Archer-Daniels-Midland (NYSE:ADM) disclosed a 6.27% stake (1.22 million shares) in the company. Metabolix's IPO started trading on the Nasdaq on 11/10. The stock is currently $17.41 after pricing at $14.

Archer-Daniels said, "On November 15, 2006, concurrent with the Company’s initial public offering, ADM acquired 535,714 shares of Common Stock from the Company in a private placement at a price of $14.000 per share. On the same date, 833,333 shares of convertible preferred stock owned by ADM were converted into 681,083 shares of Common Stock of the Company. ADM originally acquired the shares of convertible preferred stock from the Company on January 19, 2006 at a price of $6.00 per share. All purchases of the Common Stock and convertible preferred stock were made from ADM’s working capital."

MBLX disclosed the ADM relationship and share transaction in its IPO prospectus.

ADM is one of the world’s largest processors of soybeans, corn, wheat and cocoa. ADM is also a leader in soy meal and oil, ethanol, high fructose corn syrup and flour.

Metabolix, Inc. is developing and commercializing environmentally sustainable and totally biodegradable Natural Plastic as a clean alternative to petroleum-based plastics.

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