Louis Dreyfus says mulls IPO, merger to fund plans
2011-04-07 17:53:30
According to an article from Reuters on April 5, Louis Dreyfus chairman Margarita Louis-Dreyfus, is considering a stock market listing, a merger or bringing in a private investor to fund future projects. The chairman is holding talks with the company's minority shareholders, who can demand that the group buy them out from next year, she told Les Echos, adding that Louis Dreyfus had to be "prepared for all options." Louis Dreyfus, whose commodities arm generates about $35 billion in annual revenue, dominates the flow of agricultural commodities worldwide, together with rivals Archer Daniels Midland Co, Bunge Ltd, and Cargill Inc. It is the world's largest cotton and rice trader and ranks in the top three in orange juice, wheat, corn and sugar. However ABCD are increasingly being challenged by WONG – Wilmar, Olam, Noble and Glencore, who are gaining ground on the old big four. One reason why Dreyfus is looking at an IPO is that it may want to beef up its bank account before continuing merger talks with Olam. Another is that its concerned that commodity prices will fall and then it will be in critical financial condition.