Proposal by Ebro to look at SunRice purchase, highlights continuing interest in Australian soft commodity exporters, so relevant to pricing of GrainCorp, says Credit Suisse. "While we would hesitate to attach a definitive timeline, GNC is clearly a potential takeover target," says Credit Suisse, adds GNC earnings risks for FY10 and FY11 generally positive. In absence of proposal for GNC, Credit Suisse maintains target at A$8.50 with neutral rating but acknowledges realistic probability for a takeover proposal in excess of A$10/share.
The Sunrice takeover is very interesting, offer is $50,000 (yes, $50,000) for the A class shares and $5.25 plus 60 cents franking credit. Newcastle exchange code RGWB. The Bell Bros of Bell Potter have major rice interests in the Riverina of NSW and own something like $13m of RGWB.
I have bought some GNC.
GNC Price at posting:
$7.69 Sentiment: Hold Disclosure: Held
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