GrainCorp Rejects ADM Offer; Virgin, Tourism Australia in Partnership

Marcus Jacob
13 Dec, 2012
New York City

Australian markets halted a four-day rally and resource stocks advanced. GrainCorp rejected sweetened takeover offer of $2.8 billion from Archer Daniels Midland. Tourism Australia and Virgin Australia extended their partnership to $12 million over three years.

[R]7:30 PM Sydney – Australian markets halted a four-day rally and resource stocks advanced. GrainCorp rejected sweetened takeover offer of $2.8 billion from Archer Daniels Midland. Tourism Australia and Virgin Australia extended their partnership to $12 million over three years.[/R]

Australian markets halted a four-day rally and closed down a fraction. Resource sector stocks closed up but banks were generally lower.

The ASX 200 index inched down 1 to 4,582.80 and the broader All Ordinaries edged up 1.10 to 4,592.94.

Australian dollar inched to a 3-month high and rose as much as $1.058 before closing down to $1.055.

Stock Movers

GrainCorp traded down 5 cents to $12.40 after the company rejected the sweetened $2.8 billion bid from ADM and said the offer undervalues the company. GrainCorp handles 60% or 12.2 million tons of grains storage including barley, wheat, canola and sorghum.

BHP Billiton Limited gained 24 cents to $36 and Rio Tinto Limited advanced 55 cents to $62.75.

Linc Energy tumbled 20.4% to $1.03 after rising as much as 40% in previous two days on a speculation that a Russian billionaire may be interested in the company.

Lynas Corporation Limited slid 1.5 cents to 58.5 cents, Iluka Resources plunged 48 cents or 5.6% to $8.16 and Fortescue Metals slid 3 cents to $4.25.

Mirabela Nickel added 0.5 cents to 47 cents and Newcrest Mining dropped 20 cents to $23.54. Kingsgate lowered 5 cents to $4.69 and Whitehaven Coal down 1 cent to $3.23.

Transfield Services gained 5 cents to $1.83 and engineering contractors WorleyParsons jumped 42 cents to $23.39.

Monadelphous Group decreased 8 cents to $22.27. Downer EDI added 5 cents to $3.86 after the company agreed to a settlement of S$50 million for a tunnel dispute in Singapore.

Lend Lease increased 3 cents to $8.98.

Oil Search Limited slipped 6 cents to $7.16 and Santos Limited up 3 cents to $11.16.

Woodside Petroleum down 5 cents to $34.40 and Origin Energy Limited gained 8 cents to $11.33.

Seven West Media rose 5 cents to $1.64. Harvey Norman Holdings jumped 6 cents to $1.89.

Coca-Cola Amatil dropped 23 cents to $13.33 after the company estimated lower than expected earnings increase of 5% increase in 2012.

Woolworths slumped 30 cents to $29.53 and Kathmandu added 1 cent to $1.57.

David Jones Limited closed unchanged at $2.50 and Wesfarmers declined 43 cents to $35.85. Breville Group slipped 10 cents to $6.35.

Billabong International Limited added 1 cent to 94 cents.

Commonwealth Bank of Australia gained 8 cents to $61.28 and Bank of Queensland decreased 7 cents to $7.16 and ANZ slid 2 cents to $24.68.

Macquarie Group dropped 17 cents to $33.40 and Perpetual Limited climbed 36 cents to $33.76. National Australia Bank slipped 6 cents to $24.60. Westpac increased 8 cents to $25.98.

Toll Holdings down 3 cents to $4.63, Leighton added 1 cent to $16.84 and property developer Mirvac Group closed unchanged at $1.50.

Westfield Group gained 2 cents to $10.60.

Qantas up 1 cent to $1.40, Flight Centre jumped 37 cents to $26.50 and Virgin Australia slid 1 cent to 42.5 cents.

Telstra closed down 2 cents to $4.26.