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GrainCorp sale still pending

After having its first offer knocked back, it's expected that Archer Daniels Midland will reconsider what it's happy to pay for GrainCorp.

As one of the world's largest corn, oilseed and wheat processors, the United States' Archer Daniels Midland had its first offer of $2.8 billion or $12.20 a share, knocked back in December 2012, reports AFR.

There is now talk that the company will reassess its options, with RBS Morgans analyst Belinda Moore telling AFR she expects the company to up the ante.

"They have not got GrainCorp board support at $12.20 a share, so they will need to go a lot higher," she said.

Moore says GrainCorp is worth $14.40 a share.

However a fund manager (who chose to remain anonymous) said ADM doesn't need to increase the offer, and could even get it for $10 a share.


 

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