CANADIAN giant Viterra may want to have a quiet word with whoever was doing due diligence on its $1.6 billion all-scrip bid for ABB Grain given the revelation that ABB was in breach of its loan covenants as at October 31 last year.
According to The Australian Financial Review, Viterra managed to obtain a waiver, the breach was thought to be purely technical, but it's interesting to note some of the management changes that occurred just after the transaction was completed.
Equally, the likes of Elders and AWB will be hoping this blip hasn't put Viterra off reboarding the acquisition bandwagon, but insiders reckon the aforementioned pair's hopes for a takeout may be in vain.
Viterra's rural services business is completely different to Elders and chief executive Mayo Schmidt has made it clear the focus remains on handling bulk commodities.
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