Reuters: Deals: Viterra says in exclusive sale talks with suitor

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Viterra says in exclusive sale talks with suitor Mar 19th 2012, 15:42 By Rod Nickel and Clara Ferreira-Marques WINNIPEG, Manitoba/LONDON | Mon Mar 19, 2012 12:01pm EDT WINNIPEG, Manitoba/LONDON (Reuters) - Canada's biggest grain handler, Viterra (VT.TO), said on Monday it was in exclusive talks with a prospective buyer. Viterra didn't identify the suitor, but industry sources have said Swiss-based commodities trader Glencore (GLEN.L) is developing a bid that would involve Canadian grain handler Richardson International Ltd and farm retailer Agrium Inc. (AGU.TO) Glencore officials would not comment, while a Richardson spokesperson was not immediately available for comment. Shares of the Regina, Saskatchewan-based company have climbed by nearly half since March 9, when Viterra said it had received expressions of interest from third parties. Winning Viterra would give a company access to Canada's canola, spring wheat, durum and oat supplies, just as the Canadian Wheat Board's marketing monopoly over wheat and barley is set to end later this year. The Wheat Board has held its monopoly on Western Canadian wheat and barley for milling or export for 69 years. A rapidly growing global population and rising middle class in some developing countries are expected to drive demand for grains higher over the long term, making major grain handlers and food processors such as Viterra more important. Canada is the world's No. 8 grain producer. Trading of Viterra shares in Toronto was halted pending the company's statement and were set to resume at noon Eastern time (1600 GMT). Viterra said its talks with its auitor were based on a price consistent with a statement on Thursday in which it said it was aware of press reports of interest around C$16 per share. At C$16 a share, its market vale would be about C$5.9 billion ($5.95 billion). Viterra's shares had closed at C$10.98 on March 8, the day before the company said it had received expressions of interest, which sent the stock skyrocketing. In fiscal 2011, Viterra had net income of C$265 million on sales of C$11.79 billion. ($1=$0.99 Canadian) (Reporting by Rod Nickel in Winnipeg, Clara Ferreira-Marques in London and Bangalore equities newsroom; Editing by Peter Galloway) Link this Share this Digg this Email Reprints

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