THE fact that Elders has managed to get an extension on its 364-day debt facilities for three months removes some of the uncertainty for the stock, according to the
The Australian Financial Review.
But while there are a lot of logical buyers for the company - including the ABB/Viterra party, AWB and global commodities traders such as Bunge and Cargill, there is still a bit of work to be done before it can be considered a clean takeover play.
Elders' rural distribution network is the jewel in its crown, but the proposition is complicated by a number of non-core assets such as its forestry and automotive businesses.
While the rural services business has suffered this year from lower volumes and lower input prices, the rural distribution network is the oldest and largest in the country and has a strong brand.
Elders boss Malcolm Jackman has flagged an intention to get rid of non-core assets and to this end, Elders and its joint venture partner AWB last month put their fertiliser business, Hi-Fert, up for sale. So far, the interest in this business is said to be strong.
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