Canadian Grain Firm Rising on Buyout Speculation (VTRAF, ADM, BG, NOBGY, GLCNF, XSRAY)

Commodities & Metals

Published: March 15, 2012 12:05 pm

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Canadian grain handling company Viterra Inc. (OTC: VTRAF.PK) is reported to have three potential buyers in its data room, in advance of making an offer to acquire the firm. Bloomberg News is reporting that an unnamed source says that Archer Daniels Midland Co. (NYSE: ADM), Bunge Ltd. (NYSE: BG), and Noble Group Inc. (OTC: NOBGY.PK) are currently conducting their due diligence. A bid of at least $16.13/share was necessary to get the key to the data room. That values Viterra at around $6 billion.

More interesting is the source’s revelation that Glencore International plc (OTC: GLCNF.PK) may also be interested in acquiring Viterra. Glencore is named as a potential buyer for nearly every commodity trading company, mining company, or ag company that is now or ever might be on the market. The company’s proposed merger with Xstrata plc (OTC: XSRAY.PK) will create an $80+ billion behemoth and even Glencore might want to take a breather before plunking down even more cash.

Viterra shares are up 7.7% today, at $15.90 after posting a new 52-week high of $16.08 earlier.

Paul Ausick

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