AWB Ltd says it intends to engage in discussions with Canadian fertiliser group Agrium Inc over a $1.2 billion unsolicited cash takeover offer, sending its share price surging almost 30 per cent.
The offer for Australia's largest wheat exporter has underscored the fierce competition for Australia's wheat industry, which is counting on a bumper crop this year as suppliers in Europe and Russia struggle with drought and poor production.
In a statement to the Australian Securities Exchange (ASX), AWB said its merger implementation deed with GrainCorp Ltd remained in place, with the company's directors continuing to recommend shareholders vote in favour of the deal.
At 1228 AEST, AWB shares had rocketed 31.05 per cent to $1.435, against a benchmark index drop of 0.67 per cent.
The Agrium offer, valued at $1.50 per share, is conditional on limited due diligence and subject to foreign investment approvals and the removal of AWB's 10 per cent shareholding cap.
More at: http://www.businessspectator.com.au/bs.nsf/Article/AWB-Agrium-takeover-offer-wheat-Graincorp-pd20100816-8CVJW?opendocument&src=rss
