European Union wants market-based answer to commodities surge

Commodity prices have surged largely due to supply and demand bottlenecks and the European Union's response should be "considered and market-based" rather than rely on mandatory curbs, governments are set to agree.

Some EU countries such as France want curbs on what they see as speculators such as hedge funds making quick gains in commodities markets at the expense of consumers.

The tone of the statement, due to be endorsed by the bloc's industry ministers on Thursday (10 March), is cautious on blaming the financial sector, however, and does not call for any radical measures such as the position limits that are being introduced in the United States. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.

DuPont's Danisco bid rejected by US shareholder

US chemical company DuPont's bid for Danish enzymes and food ingredients firm Danisco is too low, according to US shareholder Elliott Associates, Danish daily Borsen reports. The shareholder, a New York-based hedge fund, criticizes Danisco's board for recommending the bid.

Elliott Associates wants a higher price for Danisco or to keep Danisco as an independent company, Borsen writes, citing a letter Elliott Associates sent to Danisco's board. Elliott Associates controls about 1.25 percent of the Danisco shares, according to Borsen, making it one of the largest shareholders in the company.

DuPont has offered DKK665 (€ 89.17 or US$120.90) a share for the Danish food ingredients company. According to Borsen, several large hedge funds have bought Danisco shares amid speculation that DuPont will raise its bid. Read more ...

This blog is written by Martin Little The Global Miller, published and supported by the GFMT Magazine from Perendale Publishers.