The US crop processor submitted its second, higher A$2.81bn ($2.9bn) bid on December 3 after its initial A$2.7bn ($2.8bn) submission on October 19 was rejected.
Today, GrainCorp rejected this sweetened offer.
“The increase in the proposed price has not changed the Board’s view that ADM’s proposal materially undervalues GrainCorp. GrainCorp has advised ADM accordingly,” it said.
However, Jackie Anderson, spokesperson for ADM argued against that notion in a statement: “The revised proposal represented a substantial premium to the prevailing GrainCorp share price at the time of our first approach. We believe that our revised proposal properly values GrainCorp’s business, taking into account GrainCorp’s 2012 results and its new initiatives announced on November 15.”
The US crop processor stood by its earlier opinion that its proposal offered “more certainty, greater value and immediate realization of potential future value for GrainCorp shareholders” than the Australian firm’s stand-alone plan.
“We intend to consider all our options with respect to GrainCorp and our 19.9% shareholding,” Anderson added.
Proposals not to be ignored…
GrainCorp - one of the last remaining independent traders in the country - said it would “be constructive” in any future proposals bearing the interest of its shareholders in mind.