Archer Daniels Midland raises offer for GrainCorp

(AP) Agribusiness conglomerate Archer Daniels Midland Co. is increasing its buyout offer for GrainCorp by almost 4 percent and disclosed it has already added to its stake in the Australian grain handler.

Under the revised deal, it will cost ADM about $2.33 billion to buy the rest of the Australian company.

ADM said Monday that it owns 19.9 percent of GrainCorp Ltd., up from 14.9 percent when it initially made its acquisition bid in October.

ADM has said that it wants to invest in overseas suppliers. Australia is a major exporter of many commodities, from minerals such as iron ore to agricultural goods like wheat.

Decatur, Ill.-based ADM is now offering GrainCorp stockholders 12.20 Australian dollars ($12.73) per share. It previously offered 11.75 Australian dollars ($12.13) per share.

GrainCorp currently has 228.2 million outstanding shares, according to FactSet.

ADM said that GrainCorp shareholders will keep the 35 Australian cents dividend (37 cents) that the company announced in November.

ADM said that its revised bid is subject to GrainCorp giving it access to its books and a recommendation from GrainCorp's board.

Shares of ADM fell 3 cents to $26.67 in premarket trading.