Risk management firm pulls out of grain handling
US risk management firm FCStone is in talks over the disposal of its last remaining stake in grain handler FGDI, whose losses helped leave the group in the red for a third successive quarter.
The Kansas-based company said it had signed a non-binding letter of intent to sell its outstanding 25% stake in FGDI to Agrex, a division of Japan's Mitsubishi Corporation.
FCStone, which sold control of FGDI to Agrex two years ago, said the decision followed a legal settlement at the grain marketer which landed the broker with a $2.4m after-tax hit.
"As a minority investor, we do not have any operational control of FGDI and we did not have any direct involvement in the disputed commodity contracts or the settlement proceedings," FC Stone said.
FGDI claims to be America's largest exporter of edible soybeans to Asia, and a major handler of grains from South America.
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