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Elders Limited (ASX:ELD) has confirmed it has rejected a takeover bid for its rural services business and has entered into exclusive negotiations over its Futuris automotive division.
Elders says its board decided the offer made for the rural services business – reportedly made by Ruralco Holdings Limited (ASX:RHL) – is inadequate with respect to value, execution risk and other considerations.
The company says it continues to have the support of its banking syndicate to consider alternative strategies, including ongoing discussions with interested parties and other options for the company such as restructuring and refinancing alternatives.
Last week, Elders entered a trading halt to consider final bids for its rural services and auto parts businesses.
Elders posted a $300 million loss in the first half of the current financial year.
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