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Archer-Daniels-Midland Co V.ADM


Primary Symbol: ADM

Archer-Daniels-Midland Company is a human and animal nutrition company. The Company is an agricultural supply chain manager and processor. It operates through three business segments: Ag Services and Oilseeds, Carbohydrate Solutions, and Nutrition. The Ag Services and Oilseeds segment includes global activities related to the origination, merchandising, transportation, and storage of agricultural raw materials, and the crushing and further processing of oilseeds such as soybeans and soft seeds into vegetable oils and protein meals. The Carbohydrate Solutions segment is engaged in corn and wheat wet and dry milling and other activities. The Nutrition segment is engaged in the manufacturing, sale, and distribution of a range of ingredients and solutions, including plant-based proteins, natural flavors, flavor systems, natural colors, emulsifiers, soluble fiber, polyols, hydrocolloids, probiotics, prebiotics, enzymes, botanical extracts, and other specialty food and feed ingredients.


NYSE:ADM - Post by User

Post by AuInvestorUSAon Nov 13, 2012 3:14pm
343 Views
Post# 20594990

Tough Choices

Tough Choices

My hat goes off to manangement on this deal. They had a tough choice of taking more dilution at shareholder expense to keep their jobs, options and the development process alive.  OR they could negotiate a sale to someone who could afford to and wants to develop a large orebody. Has anyone looked around at the market lately. ATM needed money and at $0.40 it was going to be major dilution for essentially "carrying costs". I like management who stand up and make the hard choice even if it cost them their jobs and options. Where were they going to get $800M to build this mine? They weren't!!! I'd say they negotiated a huge premium from a tough spot. IMHO

 

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