December 14, 2009

AWB, Gavilon asset purchase talks founder on price

Talks between AWB Ltd. and US-based privately held Gavilon Group LLC for Gavilon to buy the agribusiness' Geneva unit and partner its Australian Commodities Management unit have foundered, according to a report in Monday's (December 11) Australian Financial Review.

"The initial agreement fell over because they couldn't agree on price," the report said.

AWB is also trying to sell its stake in Hi-Fert Pty Ltd., a 50/50 fertilizer joint venture with Elders Ltd., but Hi-Fert doesn't have much value except for inventory, which was bought at a high price and written down recently, while holding net debt in excess of A$200 million (US$181.36 million), the report said.