Viterra talking $1.4B deal with Australian company

Viterra Inc. of Regina is in talks with ABB Grain Ltd. of Australia, the companies said Tuesday.

ABB Grain said it had received a "conditional and non-binding proposal" from Viterra worth about $7.80 to $8.25 Cdn a share.

The Australian newspaper said the bid is worth about $1.4 billion.

ABB said the offer includes cash, stock and "franked" dividends — dividends with a tax benefit attached. It didn't break out the proportions of the components. 

 ABB, formerly the Australian Barley Board, is a grain, malt and rural services company with 1,100 employees.

It has been looking for a partner in the grain business.

Viterra stock fell 10.2 per cent, or 96 cents a share, to $8.47 in TSX trading. ABB Grain jumped about 20 per cent to about $7.30 in Australian trading.