NUFARM could be in for a rocky day of trading after providing an update on Sinochem's $2.8 billion takeover bid after the market closed yesterday.
Nufarm and Sinochem have been in talks for at least five months and signed an exclusivity agreement in late September that allowed Sinochem to conduct five weeks of due diligence.
The exclusivity agreement is set to expire tomorrow, but they have so far been unable to seal the deal.
Sinochem, advised by RBS, is still assessing the results of its due diligence and trying to get some more answers from Nufarm.
Nufarm, advised by UBS, has told the Chinese company it is willing to keep working towards a deal on the proposed terms of $13 a share until December 23, but no longer on an exclusive basis. More ominously, Sinochem last night said its view on the price for each share had not been finalised, amid a "challenging environment".
Rival suitors for Nufarm have not emerged despite months of opportunities, so it would appear unlikely that Sinochem will face competition at this stage.
But the market is not a fan of uncertainty, and so worries that the talks could falter may lead Nufarm's share price to trade below yesterday's closing price of $11.24.(Now 10.53)
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