Australian agribusiness GrainCorp said Tuesday suitor Archer Daniels Midland (ADM) had bumped up its takeover offer to Aus$2.8 billion (US$2.9 billion), a 3.8 percent increase on its earlier rejected bid.
GrainCorp knocked back a Aus$2.68 billion, Aus$11.75-per-share offer last month from ADM, a leading American agricultural commodities trader, with the Australian grain firm holding out for more money.
It advised the Australian stock exchange that ADM had returned with a better offer late Monday and had also increased its stake in GrainCorp by another five percent to 19.9 percent.
"GrainCorp advises that on Monday evening ... it received a revised indicative non-binding proposal from ADM stating that it is prepared to make a takeover offer to acquire the outstanding shares in GrainCorp at a price of Aus$12.20 per share in cash," it said in a statement.
"ADM advised that it has now accumulated an economic interest in 19.9 percent of GrainCorp shares, which includes an additional five percent of GrainCorp shares acquired on 3 December 2012."
GrainCorp said its board would review the proposal and advise the market in due course.
The new offer reflects the value of GrainCorp shares at the time it knocked back ADM's earlier proposal after reporting a record net profit for fiscal 2012, up 19 percent at Aus$204.9 million in the year to September 30.
GrainCorp's stock price jumped 3.18 percent on the revised bid in morning trade Tuesday to Aus$12.32.
GrainCorp services about 30,000 grain producers in the eastern states of Queensland, New South Wales, Victoria as well as South Australia and has one of the largest grain storage, handling and logistics networks in the nation.
Its combined storage capacity is more than 21 million tonnes at about 280 sites nationwide, with its vast network aligned with rail and road links for transporting grain to market.
Analysts say Illinois-headquartered ADM, one of the world's biggest food companies producing goods from cottonseed and peanuts to ethanol and animal feed, is interested in GrainCorp to gain a foothold in Asia.