Embattled Stock Prices Force Bunge and Corn Products Merger off the Table

---

Researched by Industrial Info Resources (Sugar Land, Texas)--The proposed merger of Bunge Limited (NYSE:BG) (White Plains, New York) and Corn Products International Incorporated (NYSE:CPO) (Westchester, Illinois) has been terminated. Corn Products withdrew a recommendation to pursue the acquisition as both companies watched the value of their shares tumble from when the merger was announced June 23.

Before the announcement, Corn Products' share price closed at $42.90 and within a few days rose to $54.96 before settling at $50.16. On November 10, CPO closed at $24.32, but up from the 52-week low of $17.51. Meanwhile, Bunge's share price climbed to a high of $127.64 and closed at $110.70 on the day the merger was announced. On November 10, BG closed at $44.22, down nearly 60% from the merger announcement.

Corn Products marked the 11th consecutive quarter of record sales this past September and posted net income of $220.8 million, up 46% compared with the same period last year. Equally, Bunge saw a 52% hike in net sales, but net income dropped to $234 million, down by 33% for the third quarter compared with a year ago.

The global agribusiness market is expected to recover from what some describe as a short-lived period of soft demand for feed input.

Industrial Info is currently tracking roughly $350 million in capital and maintenance projects at Bunge facilities in the U.S. and Canada, including a $75 million expansion of a soybean processing refinery in Alabama.

View Plant Profile - 1006939
View Project Report - 04003576

Industrial Info Resources (IIR) is a marketing information service specializing in industrial process, energy and financial related markets with products and services ranging from industry news, analytics, forecasting, plant and project databases, as well as multimedia services.