Bunge Buys Out Corn Products for $4.4 Billion
Money Morning (June 23rd, 2008) Writes:
By Jason Simpkins
Associate Editor
Bunge Ltd. (BG), fertilizer and oilseed producer, said it will buy Corn Products International Inc. (CPO) for $4.4 billion, or $56 a share, a 31% premium to its Friday closing price.
The purchase will help Bunge expand its product line to include Corn Products’ starches, syrups and sweeteners.
The deal will help Bunge diversify its sources of revenue with a “solid cash-flow business,” Chief Executive Alberto Weissar told Reuters. Weissar expects the deal to be closed in the fourth quarter of 2008 with a bump in earnings coming as soon as late 2009 or early 2010.
The deal comes at a time when corn prices are soaring amid a run-up in global demand. Corn prices have surged about 75% over the past year and 17.5% since early June when flooding throughout the Midwest lowered the outlook ...


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