15 Jun 2013

Elders in trading halt as bids considered

12:00 pm on 15 June 2013

Elders has suspended trading in its stock as it considers offers for its Rural Services and Futuris divisions.

The company says it has received one or more final offers for those businesses, and wants to analyse and consult with its lenders, and among the board, the ABC reports.

It says further negotiations may be required on those offers, and has requested the trading halt continue until there is either an announcement of a sale, or when trading resumes next Tuesday.

Rival company Ruralco recently gained approval from the competition regulator, the ACCC, to pursue a takeover of Elders Rural Services, which has been for sale since last year.

Elders recently posted a $A303 million interim loss, due largely to poor performance in its Futuris Automotive division.

It has valued the Rural Services business at $A455 million, a figure analysts say it would struggle to secure.

Ruralco is yet to confirm it is behind one of these offers.