China's Sinochem has cut its takeover price for Nufarm by 8 per cent to A$2.6bn (US$2.3bn) in the wake of a lengthy due diligence process into the Australian agricultural chemical group's finances.
In cutting its cash price from A$13 to A$12 a share, the Chinese group risks losing the backing of Nufarm's board which issued a statement yesterday saying it had not been able to clarify the terms and conditions of the revised offer.
Large institutional investors may also balk at the lower price amid frustration at the sluggish pace for a deal to be agreed. The A$13-a-share price was made public in September after talks between the two groups were disclosed in July. However, the fact that Nufarm did not reject the revised offer outright is likely to provide Sinochem with some confidence.