Corn Products Set To Pull Out Of Bunge Merger
The board of directors of Corn Products International Inc. on Nov. 5 said it plans to withdraw its recommendation to be merged with Bunge Ltd.
Under terms of the agreement first announced in mid-June, Corn Products has the right to withdraw or change its recommendation to adopt the merger agreement following at least five days notice to Bunge.
If Corn Products opts to take either of those steps, Bunge then has the right to require that Corn Products hold a meeting of its shareholders to vote on the adoption of the merger agreement or to terminate the merger agreement and seek reimbursement from Corn Products for up to $10 million of Bunge’s expenses in connection with the merger.
Bunge announced last month that both companies had agreed to push back their special shareholders meetings to vote on their proposed merger until mid-to-late December.
Bunge’s share price closed at $110.70 on June 23, the day the merger was announced, while Corn Products closed at $42.90. Bunge’s share price opened at $45.31 on Nov. 5, down 59%, while Corn Products opened at $25.40, down 41%.
"We are disappointed by the Corn Products board’s decision," said Alberto Weisser, chairman and chief executive officer of Bunge. Adding that they, "have no intention of revising the terms of the transaction." They now "intend to evaluate carefully, with the best interests of Bunge’s shareholders in mind," he said.
Under terms of the agreement first announced in mid-June, Corn Products has the right to withdraw or change its recommendation to adopt the merger agreement following at least five days notice to Bunge.
If Corn Products opts to take either of those steps, Bunge then has the right to require that Corn Products hold a meeting of its shareholders to vote on the adoption of the merger agreement or to terminate the merger agreement and seek reimbursement from Corn Products for up to $10 million of Bunge’s expenses in connection with the merger.
Bunge announced last month that both companies had agreed to push back their special shareholders meetings to vote on their proposed merger until mid-to-late December.
Bunge’s share price closed at $110.70 on June 23, the day the merger was announced, while Corn Products closed at $42.90. Bunge’s share price opened at $45.31 on Nov. 5, down 59%, while Corn Products opened at $25.40, down 41%.
"We are disappointed by the Corn Products board’s decision," said Alberto Weisser, chairman and chief executive officer of Bunge. Adding that they, "have no intention of revising the terms of the transaction." They now "intend to evaluate carefully, with the best interests of Bunge’s shareholders in mind," he said.
