Corn Products to withdraw merger recommendation

WESTCHESTER, Ill. - Corn Products International Inc., which refines corn for use in food and industrial products, on Wednesday said its board of directors plans to withdraw its recommendation to be taken over by agricultural company Bunge Ltd.

In the event that Corn Products withdraws or changes its recommendation of the merger, Bunge has the right to require that Corn Products hold a meeting of its shareholders to vote on the adoption of the merger agreement or to terminate the merger agreement and seek reimbursement from Corn Products for up to $10 million of Bunge's expenses in connection with the merger.

In a statement, Bunge Chairman and Chief Executive Alberto Weisser said the company is "disappointed" by the board's decision.

"Despite the effect of unprecedented turmoil in the equity markets on our companies' stocks, Bunge's board of directors and management continue to believe a merger with Corn Products as currently structured would deliver significant value over the long-term to shareholders, employees and customers of both organizations," Weisser said in a statement.

Weisser said Bunge has no intention of revising the terms of the transaction, but will evaluate options of either terminating the agreement or proceeding to shareholder votes under the existing agreements.

Bunge said it will announce its intended course of action promptly.

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