US holding company HC2 Holdings Inc (NYSEMKT:HCHC) has expanded its alternative offer to buy assets of compatriot agricultural company The Andersons Inc (NASDAQ:ANDE) to include the ethanol business.
On June 2, HC2 Holdings also reiterated its takeover bid for Andersons of USD 1 billion (EUR 880m) in cash plus the assumption of USD 402 million in debt.
An alternative proposal to acquire Andersons’ grain and rail assets has been adjusted “to include the interest in the Ethanol assets by yet another strategic partner.” The alternative offer has as result been raised to USD 1.15 billion from USD 950 million.
“As we’ve said, we do not believe operating a disparate set of assets is the appropriate path to success for The Andersons,” Philip Falcone, HC2’s chairman, chief executive and president, said in a statement.
HC2 Holdings went public with its interest in Andersons on May 17. The latter spurned the offers as an “opportunistic attempt to acquire the Company at a low point in the industry cycle.” In an investor presentation last week Andersons said it had portfolio of complementary agri-businesses and the plan to acquire two of its units was a “non-starter.”
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HC2 Holdings adds ethanol assets to offer for Andersons