AWB has formally endorsed Agrium's takeover bid after pulling its merger plans with GrainCorp, as speculation mounts over the Canadian company's plans for AWB's grains-trading business.
Agrium does not operate a similar business, sparking speculation it may decide to offload AWB's grains-trading business. Any uncertainty could unsettle AWB's wheat growers, who also own about 20 per cent of the company.
Several parties are believed to have approached Agrium - including GrainCorp and some large international players - over the possibility of a deal, but were turned away.
Last week, Agrium chief executive Mike Wilson said there were ''no specific plans at this point'' to break up the company.
''Agrium plans on bringing value to Australia, certainly not destroying it,'' Mr Wilson said. ''We value the history the brand AWB brings to the country and to the farmer, and we're going to continue with that.''
AWB chairman Peter Polson yesterday emphasised Agrium's ''commitment to the grain-handling business''. He said Agrium's offer of $1.50 a share, valuing AWB at $1.23 billion, was better value for shareholders than the nil-premium merger proposed by GrainCorp.
A GrainCorp spokesman would not comment on the speculation, but said the company clearly saw value in AWB's grains-trading business.
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