Even The Analysts upgraded Bunge (BG) because Bunge raised guidance for FY08 above consensus and recently Bunge also acquires Tate & Lyle PLC. But you should consider fleeing away from the shares. The reason is Bunge has no cash and accordingly, it used its shares as currency to buy Corn Products (CPO). Each share of Corn Products common stock will be exchanged for 0.4207 of a Bunge common share, and if this average closing price is equal to or less than $108.90, each share of Corn Products common stock will be exchanged for 0.5142 of a Bunge common share.
Unfortunately, Bunge also absorbs approximately $414 million of CPO’s net debt. It potentially will make Bunge’s Cash to be worse.
Read more at http://conquerthewallstreet.blogspot.com/2008/07/bunge-bgs-ne...
$116.43 (06/13/08)
