The latest reports confirm that the bid by Agrium has lent a helping hand to the shares of AWB, as the shares of the letter witnessed a sharp rise of 29%.
It is believed that AWB's Landmark would benefit manifold from the takeover by Agrium. Standing at $1.50 a share, the deal favorably draws comparison from the previous year's $450 million capital raising done by AWB at $1 a share.
The offer by Agrium is in consideration for due diligence and also for the changes to the constitution of AWB. Currently, the constitution limits ownership of more than 10% the Company without approval.
However, in the wake of the stocks of AWB up by 29% at $1.41 a share and GrainCorp's shares up by 4%at $6.52 a share, the market has given out crystal clear indications.
AS per the terms of the Graincorp merger, any alterations in the recommendations from the AWB Board liberates Graincorp from its commitments to proceed with the offer and a break fee of 1%, or $8.6 million, is payable.
Though, the Australian Competition and Consumer Commission, the competition watchdog was closely scrutinizing the deal, however, as per the sources, the same type of supervision would not be experienced by Agrium.
To ensure that sound decisions are being made, Agrium is being advised by Barclays, while, Deutsche Bank is advising AWB.