Archer Daniels Midland revises GrainCorp bid upward
New bid takes into account GrainCorp dividend
Archer Daniels Midland Company has revised its acquisition bid for the Australia-based GrainCorp Limited. The non-binding proposal would set the acquisition price at A$12.20 per share in cash, while allowing shareholders to keep a A$0.35 dividend announced Nov. 15. “We consider that our revised non-binding proposal reflects the value of GrainCorp’s business, taking into account GrainCorp’s 2012 results,” said ADM Chairman and CEO Patricia Woertz. “ADM is a disciplined buyer, and any combination with GrainCorp must meet our key financial hurdles, taking into consideration the impact of the Australian agricultural cycle on GrainCorp’s earnings power.” The most recent proposal represents an A$0.80 increase over the initial proposal of A$11.75, made Oct. 19.