Bunge calls off merger with Corn Products
November 10, 2008
by Eric Schroeder
WHITE PLAINS, N.Y. — The board of directors of Bunge Ltd. has voted to terminate the proposed merger agreement between Bunge and Westchester, Ill.-based Corn Products International, Inc. Under terms of the agreement, Corn Products must reimburse Bunge for up to $10 million of its costs and expenses incurred in connection with the transaction.
"We remain disappointed with the decision of the Corn Products board to withdraw its recommendation of the merger," said Alberto Weisser, chairman and chief executive officer of Bunge. "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.
"Moving forward, Bunge will continue to pursue its strategy of investing for growth in its core businesses and in complementary value chains."
Corn Products had no comment on Bunge’s decision.
Shares of Corn Products were down 2.4% in premarket trading at $23.97. Bunge shares were up nearly 5% at $46.40.