Yesterday Treasurer Joe Hockey said he wouldn’t be bullied over GrainCorp, which is subject to a takeover by US heavyweight Archer Daniels Midland.
He didn’t say who he was referring to. though it is safe to assume he is under pressure from a number of Nationals MPs who would rather a foreign company didn’t buy Australia’s largest listed agribusiness.
Hockey is going to make a decision by December 17, and in the meantime the rhetoric could be making the deal better value for investors, who are pretty sure it will get the go-ahead.
“We bought some more about a month ago and to me it would be illogical for the government to knock back the transaction,” said Wilson Asset Management chairman Geoff Wilson in the AFR.
(Wilson owns around 1.5% of GrainCorp)
“Of course I’m not saying illogical things don’t happen, but the uncertainty that the Nationals have created does create a buying opportunity.”
Others are also applying the same logic.
“We have always had the view that there will be some noise around the deal, especially after the election, but that it would go through with conditions. That has been the view of most M&A funds,” Aurora Fortitude’s John Corr said in the article.
After all, Prime Minister Tony Abbott has declared Australia “open for business.”
There’s more here.