ABB profit problems do not change Viterra plan
Australian grain trader ABB Grain has issued its third profit warning in four months. Next week on September 9, shareholders will vote on Canada's Viterra proposed takeover of the big grain company.
Late last week ABB issued a statement saying a write-down on its fertiliser inventory would lower 2008-09 net profit to between AUS$33-43 million, compared with its previous guidance of AUS$43-53 million.
The revised profit outlook, however, has no impact on the directors’ unanimous recommendation in favour of the scheme of arrangement with Viterra, in the absence of a superior proposal, the ABB statement says.
Both ABB and Viterra say they believe the scheme process remains on track for the coming vote on September 9.
“The world fertiliser industry has experienced a severe contraction in prices this year, and the Australian market has not been immune,” ABB Grain chairman Perry Gunner says in the statement.
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