Bunge Finalizing Agreements with Investors, to Consider Sale: Sources

(Reuters) – Bunge Ltd (BG.N) is finalizing agreements with activist investors D.E. Shaw and Co and Continental Grain Co to add four directors to its board and set up a committee to explore a sale, two sources familiar with the matter said on Tuesday.

The agreement was first reported by the Wall Street Journal, which earlier this month said D.E. Shaw had raised its stake in the grain trader and was working with Continental Grain to make operational improvements at the company.

Bunge, D.E. Shaw and Continental Grain did not immediately respond to a request for comment. Bunge shares were up 3.3 percent at $67.92 on Tuesday afternoon.

The sources, who could not be named because the agreements are not yet public, said three new directors would be announced on Wednesday, when Bunge is expected to report quarterly results. A fourth would be announced in due course.

Reuters reported in March that Continental Grain Co would push Bunge to consider a potential sale, after rival Archer Daniels Midland Co (ADM.N) approached it about a takeover.

Deal talks concluded unsuccessfully earlier this year over concerns that any agreement would fail to win approval by antitrust regulators.

Bunge had rebuffed a tie-up proposal from commodity trader Glencore Plc (GLEN.L) last year.

Grain traders have struggled as a global oversupply of food commodities has made it tough to turn a profit on buying, processing and selling corn, soy and wheat, though some have benefited recently from the volatility of the U.S. government’s trade dispute with China, a major soybean importer.