So much for that idea. On Wednesday after close of trading, a spokesperson for Archer Daniels Midland (NYS: ADM) confirmed  that the board of directors of Australian grain processor GrainCorp has officially rejected ADM's Dec. 3 offer to acquire the company.

ADM had proposed buying the 80.1% of GrainCorp's shares that it did not already own, for a purchase price of $12.73 per share. ADM had further proposed that current holders of GrainCorp shares would keep for themselves the $0.365-per-share dividend that GrainCorp announced on Nov. 15.

GrainCorp, however, replied  Wednesday that "the increase in the proposed price has not changed the Board's view that ADM's proposal materially undervalues GrainCorp," and it so informed ADM.


ADM shares closed down 0.2% at $27.22 Wednesday, before news of GrainCorp's response had been made public.


 

The article GrainCorp Rejects Improved ADM Buyout Offer originally appeared on Fool.com.

Fool contributor Rich Smith has no positions in the stocks mentioned above, and neither does The Motley Fool. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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