REGINA -- Viterra Inc. (TSX:VT) has confirmed it is in discussions on a possible takeover of ABB Grain Ltd. of Australia, which could cost C$1.4 billion in cash and shares.
ABB stock sprouted 20 per cent Tuesday to A$8.43 on the Australian Securities Exchange, up from $7.00 on Monday and $6.24 Friday.
ABB Grain -- the former Australian Barley Board, privatized to farmers in 1999 and taken public on the stock market in 2002 -- confirmed it has received "a conditional and non-binding proposal from Viterra to acquire all of the shares in ABB."
There are about 173 million ABB shares outstanding, and the company said the proposal amounts to between A$9.00 and $9.50 per share in a mix of cash and stock.
