Corn Products Rises as Analyst Suggests Bunge Buyout
Corn Products International Inc., which sells sweeteners to Coca-Cola Co. and PepsiCo Inc., rose the most since August in New York trading after a Citigroup Inc. analyst speculated Bunge Ltd. (BG) may revive a bid for the company.
Corn Products climbed $1.27, or 4.3 percent, to $31.02 at 4:15 p.m. in New York Stock Exchange composite trading. The shares gained 1.3 percent last year.
Bunge is in discussions to sell its fertilizer assets in Brazil to Vale SA. (VALE5) Vale has valued the unit at as much as $3.8 billion, and Bunge may plan to use that money to pursue other assets, analyst David Driscoll said in a note dated yesterday.
“We wonder if Bunge is gearing up for another run at Corn Products International,” Driscoll wrote.
Bunge terminated an agreement to purchase Corn Products in November 2008 after the economic crisis eroded the all-stock offer’s value by almost two-thirds to $1.68 billion and the corn processor withdrew its support for the deal.
“We don’t comment on speculation,” Mark Lindley, a spokesman for Westchester, Illinois-based Corn Products, said in a telephone interview. Susan Burns, a spokeswoman for White Plains, New York-based Bunge, didn’t immediately return a voicemail seeking comment.
Bunge fell 85 cents, or 1.2 percent, to $69.
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