Bunge cancels Corn Products takeover

Bunge had made a $4.8 billion in an all-stock offer for Corn Products but the
bid’s value dropped to about $1.7 billion since amid dropping crop prices and a
weakening economy.

Last week Corn Products’ board of directors said it
wanted to withdraw its recommendation of support for Bunge Limited’s proposed
all-stock takeover offer.

Corn Products, of Westchester, Ill., must now
reimburse Bunge for up to $10 million of its costs and expenses incurred in
connection with the deal.

“We remain disappointed with the decision of
the Corn Products Board to withdraw its recommendation of the merger,” said
Alberto Weisser, Bunge Limited’s chairman and CEO.

“While we continue to
believe in the long-term strategic benefits of a merger between Bunge and Corn
Products, after careful consideration we have determined that it would not be in
the best interests of our company or shareholders to pursue the transaction at
this time.”

Corn prices down
Since the deal was announced, corn
prices have fallen to $4 a bushel from a high of $8 a bushel, and a deeper
economic slowdown has clouded the outlook for food producers.

Looking
ahead, Bunge said it will continue to pursue its strategy of investing for
growth in its core businesses and in complementary value
chain.