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Graincorp backs off from Ridley takeover
24 Jul 2008
Graincorp has withdrawn its $260 million offer to buy stock feed maker Ridley Group and says that it wants to retain a good working relationship with its big customer. Graincorp failed to negotiate a merger with Ridley in May and launched the hostile takeover offer based on one Graincorp share for nine Ridley shares. The Ridley board said the offer undervalued the company and exposed shareholders to increased price and earnings volatility. Since May Graincorp shares have fallen by more than 37 per cent, lowering the value of the bid from $415 million *or* $1.39 per share to $260 million *or* 86 cents per share.
The Australian Financial Review, 24/07/2008
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