American company to acquire GrainCorp: Midday roundup

Australia’s biggest grain handler GrainCorp is set to be taken over by American company Archer Daniels Midland for $3.4 billion, should the ADM decide to proceed with the process.

Shareholders will receive a total $13.20 per share, including a $1.00 dividend. The dividends are expected to be fully-franked and provide an additional $0.43 a share.

It is the third attempt by ADM to purchase the US grain giant, after first approaching the company last October with a bid of $11.25-per-share bid. This bid was rejected as was the second bid of $12.20 a share.

GrainCorp has agreed to exclusivity restrictions which prohibit the company from “soliciting, inviting or initiating” any competing proposals and should another bid be placed, ADM will have two days to match the offer.

Twitter settles with Jodee Rich

Twitter and Australian entrepreneur Jodee Rich, the founder of the collapsed telco One.Tel, have reached a settlement which allows Rich’s business PeopleBrowsr to buy Twitter’s data until the end of 2013.

Social analytics company PeopleBrowsr has been reselling social media data, purchased directly from Twitter, to clients in the US.

As of next year, PeopleBrowsr will have to purchase full access to Twitter’s “Firehose”, which compiles 400 million daily tweets, through one of its authorised re-sellers.

The legal battle began in July last year when Twitter used a clause in its contract to terminate the contract without cause.

Shares rise on open

The Australian stock market has opened higher, following leads from the mining companies.

The S&P/ASX200 was up 21.1 points to 5123.5 at midday, as the materials sector has risen 230.3 points.

Shares in Rio Tinto had jumped $1.72 to $56.40 and stocks in BHP Billiton had increased $0.96 to $32.66.

Overnight, the Dow Jones Industrial Average closed 24.5 points higher, up 0.17% to 14700.80.