Corn Products board no longer in favor of merger with Bunge

By Lisa Kerner

Charlotte, N.C., Nov. 5 - Corn Products International, Inc. said its board of directors intends to withdraw its recommendation in favor of adoption of the previously announced merger agreement with Bunge Ltd.

The board will then recommend against adoption of the merger agreement, Corn Products said.

Bunge will have the right to require that Corn Products hold a meeting of its stockholders to vote on the adoption of the merger agreement or to terminate the merger agreement.

In addition, Bunge may seek reimbursement from Corn Products for up to $10 million of its expenses in connection with the merger, a Corn Products news release said.

Bunge said it is disappointed by the Corn Products board's decision and has no intention of revising the terms of the transaction.

"Despite the effect of unprecedented turmoil in the equity markets on our companies' stocks, Bunge's board of directors and management continue to believe a merger with Corn Products as currently structured would deliver significant value over the long-term to shareholders, employees and customers of both organizations," Bunge chairman and chief executive officer Alberto Weisser said in a company news release.

In October, it was reported that shareholders of both companies were expected to vote on the proposed merger in mid to late December rather than in November.

Bunge, a White Plains, N.Y., agribusiness and food company, agreed in June to acquire Corn Products for $4.8 billion including assumption of about $414 million of Corn Products' net debt.

Under the companies' definitive merger agreement, Corn Products stockholders will receive a fraction of a common share of Bunge determined by dividing $56 by the volume-weighted average closing price of a Bunge common share on the New York Stock Exchange for the 15 trading days ending on the second trading day prior to the date of the Corn Products stockholders meeting, it was previously reported.

Corn Products is a corn refiner based in Westchester, Ill.

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