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SYDNEY - Share in agricultural chemicals firm Nufarm Ltd, formerly New Zealand company Fernz, are in a trading halt after the company said it had received a letter about an offer.
Nufarm said it received a letter after the market closed yesterday related to previous talks it has had about a possible bid.
"All prior discussions that Nufarm has had, have been highly conditional, incomplete and preliminary in nature," it said.
"Nufarm wishes to consider its response to the letter prior to further disclosure to the market."
Nufarm shares surged yesterday on the back of takeover talk.
The speculation followed a report in Hong King's The South China Morning Post newspaper yesterday that chemicals producer China National BlueStar Corp and US buyout group Blackstone Group were revising a bid for Nufarm after an offer of US$2.7 billion ($3.85 billion) was rejected.
Nufarm reported a lower underlying profit for 2006/07 due to the continued severe drought in Australia, but said it expected strong growth to return in fiscal 2008.
Nufarm reported a 22.8 per cent increase in annual net profit for fiscal 2007 to $148.8 million, but excluding significant items, net profit fell 0.3 per cent to $120.9 million.
The operating result was below market expectations of $128.5 million and below the company's prior guidance.
- AAP
