Bunge Ltd drops bid for commodity company Corn Products International
Just a few days after the board of Corn Products International (CPO) withdrew its support to be acquired by Bunge Ltd. (BG), the board of Bunge decided to end their pursuit of the deal.
With the shares of both companies dropping significantly, especially Bunge's, the deal no longer was as attractive as when the offer was originally made.
Per the agreement, Corn Products will now have to pay $10 million to Bunge because of the failure of the deal to go forward.
Corn Products was desirable to Bunge because they were looking to become a key player in finished corn products. Bunge is primarily a food processor.
In the case of this deal, the weak credit market didn't play any part, as it was based totally on using stock. It was the precipitous drop of Bunge's stock which caused Corn Products board members to withdraw support.
Bunge Chairman and CEO Alberto Weisser said the deal no longer made sense to Bunge and its shareholders without the support of the Corn Products board, and while the commodity price couldn't support the deal.
1 comment:
I am am excited too with this question. You will not prompt to me, where I can find more information on this question?
Post a Comment