Elstar Oils SA, a Polish producer of edible oils and biofuels, fell the most in a month after its majority owner agreed to sell the stake to Archer Daniels Midland Co., ending a battle for control over the company.
Elstar slumped as much as 9.1 percent to 6 zloty, the biggest intraday drop since Aug. 9. The stock traded 3.5 percent lower at 6.37 zloty at 1:04 p.m. in Warsaw, valuing the producer based in Elblag, northern Poland, at 307 million zloty ($96 million). Its stock price has more than doubled from an August low as ADM, the world’s largest grain processor, and Bunge Ltd. competed to take over the company.
ADM yesterday raised the price in its bid to 6.5 zloty a share from 5.5 zloty a share it proposed last month and signed a deal with Chief Executive Officer Stanislaw Rosnowski, under which the holder of a 51 percent stake agreed not sell his shares to other bidders, Elstar said in a regulatory filing.
“The deal actually ends the whole battle,” Robert Maj, a Warsaw-based analyst at KBC Securities, said by phone.
Bunge, the U.S. trader and processor of agricultural commodities that already owns Polish vegetable oil producer Zaklady Tluszczowe Kruszwica SA, offered to buy Elstar at 6.75 zloty a share, according to a statement by the broker managing the bid on Sept. 1.