November 11, 2008
US-based Bunge no longer taking over Corn Products International
Bunge Limited's board of directors voted to terminate the planned takeover of Corn Products International Inc.
Bunge had made a US$4.8 billion in an all-stock offer for Corn Products but the bid's value dropped to about US$1.7 billion since amid dropping crop prices and a weakening economy.
On Wednesday, Corn Products' board of directors said it wanted to withdraw its recommendation of support for Bunge Limited's proposed all-stock takeover offer.
Corn Products, of Westchester, Ill., must now reimburse Bunge for up to US$10 million of its costs and expenses incurred in connection with the deal.
"We remain disappointed with the decision of the Corn Products Board to withdraw its recommendation of the merger," said Alberto Weisser, Bunge Limited's chairman and chief executive, in a statement Monday. "While we continue to believe in the long-term strategic benefits of a merger between Bunge and Corn Products, after careful consideration we have determined that it would not be in the best interests of our company or shareholders to pursue the transaction at this time."
St. Louis-based Bunge North America is the North American operating arm of White Plains, N.Y.-based Bunge Ltd., a food and feed ingredient company that operates grain elevators, grain and oilseed processing plants, edible oil refineries and food processing facilities in the US, Canada and Mexico.