Singapore Olam in deal talks with Louis Dreyfus

[September 24, 2010]  SINGAPORE (AP) -- Singapore-based commodity trader Olam International said Friday it has discussed a possible business combination with France's Louis Dreyfus Commodities, a global leader in rice and cotton trading.

The announcement helped boost Olam's shares by as much as 9 percent in Singapore trading.

Olam "engaged in preliminary confidential discussions," with Louis Dreyfus regarding a "business collaboration which may take the form of, among others, a merger," Olam said in a statement. "No definitive agreements in relation to the possible collaboration have been entered into" and a deal "may or may not proceed."

Uniting the two companies would create a global commodities trading giant to rival industry leaders Cargill Inc., Archer-Daniels-Midland Co. and Bunge Ltd.

[Associated Press]

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