Oct. 31 (Bloomberg) -- Nufarm Ltd. surged the most in nine years after the South China Morning Post said Australia's biggest supplier of farm chemicals may receive a takeover bid from Blackstone Group LP and China National BlueStar Group Corp.
The companies may make a revised bid after Melbourne-based Nufarm rejected an offer at $2.7 billion, or A$17.10 a share, the newspaper said, citing sources it didn't identify. The stock surged A$1.81, or 13 percent, to A$15.67 at 12:24 p.m. in Sydney, its biggest gain since July 1998.
The new bid, to be lower than A$20 a share, would be the first acquisition for closely held BlueStar, according to the newspaper.
Nufarm missed its profit forecast in September as Australia's worst drought dented demand. Net income rose to A$148.8 million ($137 million) in the year ended July 31, from A$117.2 million a year earlier. The company forecast full-year profit of A$160 million in March.
The drought is reducing water supplies used for fruit, grape and cotton crops, and forcing forecasters and farmers to cut expectations for wheat and barley output.
A spokeswoman for Nufarm wasn't immediately able to comment on the report when contacted by Bloomberg.
Tuesday, October 30, 2007
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