News: GNC UPDATE 1-Long-Term Asset Partners withdraws $1.7 bln bid for Australia's GrainCorp

(Adds LTAP chairman's comment, detail and background)

May 6 (Reuters) - GrainCorp Ltd (GNC) , Australia's largest-listed bulk grain handler, on Monday said Long-Term Asset Partners (LTAP) had withdrawn its unsolicited A$2.38 billion ($1.66 billion) takeover bid for the company.

The little-known asset manager had made an offer of A$10.42 per share in December 2018, around the same period when a drought wilted crops across Australia's east coast that limited GrainCorp's ability to earn revenue from international grain trading.

"Had due diligence supported our operational assumptions, we are confident we would have turned the LTAP proposal into a binding offer as contemplated," LTAP Chairman Tony Shepherd said in a separate release.

Lack of information on the offer had held back GrainCorp from recommending the deal to its shareholders in December.

Last month, the Sydney-based grain handler had said it was engaging with suitors vying for parts or all of the company, including LTAP.

GrainCorp is in the process of splitting the company into two businesses, with plans to spin off and list its global malting unit and restructuring its grain business.

The Australian government had blocked a A$2.8 billion takeover of GrainCorp by U.S. agribusiness giant Archer Daniels Midland Co ADM.N in 2013 following pressure from grain growers.

($1 = 1.4306 Australian dollars)