AWB's 6.8 per cent slump yesterday indicates the market, at least, doesn't have a lot of faith in the grain company sealing its long-awaited deal with Gavilon to sell its grain trading business. They are half right.
After negotiating for eight months, US-based agribusiness house Gavilon has finally walked away from the drawn-out discussions.
But AWB looks to have pulled a rabbit (or possibly something less vermin-like) out of the hat, The Australian Financial Review reports.
Last night, Graincorp was putting the finishing touches to a deal with AWB – expected to be announced as early as today – which will see it replace Gavilon and buy into AWB's Geneva trading business and half of its Australian trading arm.
Analysts have previously estimated the Gavilon deal could be worth about $300 million or so to AWB.
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