Australian company GrainCorp has rejected a US$2.7 billion offer from U.S.-based Archer Daniels Midland Company (ADM) on the heels of releasing its annual profit statement and lifting its share dividend.
GrainCorp claims the ADM deal “materially undervalues” the company, as it announced a 19% increase in net profit for the 2011-12 fiscal year. GrainCorp’s shares sat around the AUS$12.20 mark on November 15. GrainCrop did not say if the company had received any other offers.
A spokesperson for ADM, Jackie Anderson, said the company’s bid of AUS$11.75 remained “an attractive proposal.”