Louis Dreyfus hikes Namoi Cotton stake amid bidding war
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The news: Louis Dreyfus Company (LDC) has beefed up its stake in Namoi Cotton, after its latest takeover bid was rebuffed by the cotton operator's board last week.
The numbers: French agri commodities group LDC, which is Namoi's second-biggest shareholder, has increased its voting power from 16.99% to 18.02%.
Namoi's largest shareholder Samuel Terry Asset Management, which holds a 24.2% interest, has previously backed offers by LDC's rival suitor Olam Agri Holdings.
The context: Last week, Queensland-based Namoi's board recommended shareholders reject LDC's latest takeover offer, saying it believed a rival bid from Singapore-based Olam offered more value.
Earlier this month, the Australian Competition and Consumer Commission (ACCC) outlined competition concerns with LDC's proposed acquisition of Namoi, noting that the deal would likely substantially lessen competition in the supply of cotton ginning services in the north of Western Australia and Northern Territory.
The source: ASX announcement
