Viterra talking $1.4B deal with Australian company

Viterra Inc.of Regina is in talks with ABB Grain Ltd. of Australia,the companies said Tuesday.

ABB Grain said it had received a "conditional and non-binding proposal" from Viterra worth about $7.80 to $8.25 Cdn a share.

The Australian newspaper said the bid is worth about$1.4 billion.

ABB saidthe offer includes cash, stock and "franked" dividends dividends with a tax benefit attached. It didn't break out the proportions of thecomponents.

ABB, formerly the Australian Barley Board, is agrain, malt and rural services company with 1,100 employees.

It has been looking for a partner in the grain business.

Viterra stock fell10.2 percent, or96 centsa share, to $8.47 in TSX trading. ABB Grain jumped about 20 per cent to about $7.30 in Australian trading.