US risk management firm selling stake in grain handler

US risk management firm FCStone had signed a non-binding letter of intent to sell its 25-percent stake in grain handler FGDI to Agrex, a division of Japan's Mitsubishi Corporation.

The losses in FGDI have left FCStone in the red for a third successive quarter.

FCStone, which sold control of FGDI to Agrex two years ago, said the decision followed a legal settlement at the grain marketer which landed the broker with a US$2.4m after-tax hit.

FCStone said as a minor investor, they do not have any operational control of FGDI and they did not have any direct involvement in the disputed commodity contracts or the settlement proceedings.