April 13, 2007

Louis Dreyfus confirms indicative bid for Queensland Cotton
 

Louis Dreyfus Cotton International Friday said it is considering its legal position after an indicative bid for Queensland Cotton Holdings Ltd. was rejected by the target company's board.

Louis Dreyfus said its indicative bid was superior to the A$4.75/share (US$3.95/share) offer from Olam International Ltd. on Mar 7.

Louis Dreyfus said its Apr 2 and Apr 10 requests for due diligence materials were rebuffed by the Queensland Cotton board due to the terms of its agreement with Olam.

"In light of the Queensland Cotton board's refusal, Louis Dreyfus Cotton International is currently considering its legal position and strongly suggests that, in the meantime, shareholders in Queensland Cotton take no action in relation to the Olam offer," Louis Dreyfus said in a statement.

Louis Dreyfus has a 19.9 percent stake in QCH, whose board has recommended the Olam bid in the absence of a superior proposal.

QCH shares soared on news of the Louis Dreyfus proposal last Friday, reaching a high of A$5.10, up 18 cents.