BUSINESS

Archer Daniels Midland increases buyout offer for Australian grain handler GrainCorp

12/03/2012 08:30 EST | Updated 02/02/2013 05:12 EST
NEW YORK, N.Y. - Agribusiness conglomerate Archer Daniels Midland Co. is increasing its buyout offer for GrainCorp by almost 4 per cent and disclosed it has already added to its stake in the Australian grain handler.

Under the revised deal, it will cost ADM about $2.33 billion to buy the rest of the company.

ADM said Monday that it owns 19.9 per cent of GrainCorp Ltd., up from 14.9 per cent when it initially made its acquisition bid in October.

Decatur, Ill.-based ADM is now offering GrainCorp stockholders 12.20 Australian dollars ($12.73) per share. It previously offered 11.75 Australian dollars ($12.13) per share.

GrainCorp currently has 228.2 million outstanding shares, according to FactSet.

ADM said Monday that its revised bid is subject to GrainCorp giving it access to its books and a recommendation from GrainCorp's board.