Sydney - AFP
Australian agribusiness GrainCorp on Monday said it had received a Aus$2.68 billion (US$2.76 billion) all-cash takeover offer from US food giant Archer Daniels Midland (ADM). Graincorp said its board was considering the indicative, non-binding bid from the leading agricultural commodities trader which is prepared to pay Aus$11.75 for each Graincorp share. Shares in the company were at Aus$8.85 before being placed in a trading halt on Friday and soared 41 percent to Aus$12.51 early Monday. \"The GrainCorp board is reviewing the proposal and has not yet formed a view on its merits and will keep the market informed of any material developments,\" Graincorp said in a statement. It confirmed that ADM last week increased its stake in the Australian business to 14.9 percent following the purchase of a significant block of GrainCorp shares, equivalent to 10 percent of the company, on Friday. GrainCorp services about 30,000 grain producers in the eastern states of Queensland, New South Wales and Victoria and South Australia and has one of the largest grain storage, handling and logistics networks in the nation. Its combined storage capacity is more than 21 million tonnes at about 280 country sites, seven bulk port elevators and two speciality terminals. Its network is aligned with rail and road links for transporting grain to market. ADM is one of the world\'s biggest food companies, producing goods from cottonseed and peanuts to ethanol and animal feed, while it is also a large manufacturer of biodiesel and ethanol.