AUSTRALIAN TREASURER REJECTS ARCHER DANIELS MIDLAND TAKEOVER OF GRAINCORP
By Reuters
Nov 28, 2013 04:39 PM EST
Regions
Australia's largest listed grain trader GrainCorp Ltd. announced on Thursday it has junked the A$2.7 billion ($2.8 billion) takeover approach by U.S.-based Archer Daniel Midlands Co. (ADM), saying the cash offer of $11.75 per share "materially undervalues" the company. (Photo : Reuters)
Australia rejected the A$2.8 billion ($2.55 billion) takeover of GrainCorp by U.S. agribusiness giant Archer Daniels Midland (ADM) on Friday, saying the deal was contrary to the national interests.
Treasurer Joe Hockey said he would not allow to the ADM-GrainCorp deal after Australia's Foreign Investment Review Board (FIRB) failed to reach a consensus recommendation.
The deal, which faced stiff opposition from some grower groups and politicians, had been seen as the first test of the conservative government's vow that Australia was "open for business" after the victory of Tony Abbott's Liberal Party in elections in September.
Shares in GrainCorp closed on Thursday at A$11.20, compared to ADM's A$12.20 per share bid, or A$13.20/share including dividends payable by GrainCorp.
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