Tate & Lyle shares gain on fresh takeover rumours; Bunge in the frame as potential bidder
Tate & Lyle shares gained yesterday, 24 April on renewed gossip that the listed UK-based sugar producer had attracted predatory interest from rivals, the Ft.com website reported. The Ft.com market report section mentioned speculation regarding a takeover bid for Tate & Lyle from the listed White Plains, New York-based agribusiness company Bunge, but did not cite a source for the rumour.
A market report in The Daily Mail mentioned talk that Bunge could be about to table an 850p per share bid for Tate & Lyle, which would value the company at GBP 3.9bn (EUR 4.73bn). The newspaper did not cite a source for the rumour.
Dealers cited by the Daily Mail article believed that Minneapolis, Minnesota-based Cargill, a privately owned agribusiness, has also been thinking about making an offer for Tate & Lyle.
A market report in The Times noted talk that Bunge might offer 800p per share for Tate & Lyle, but did not cite a source for the rumour.
The Ft.com report said Bunge’s corn processing and bulk sugar business is relatively weak, while those businesses account for about 70% of Tate & Lyle’s sales.
Tate & Lyle’s share price closed 12.5p up at 669.5p in London yesterday, giving the company a market capitalisation of GBP 3.11bn.
Source FT.com, Daily Mail, The Times