Ruralco may sell Elders stake

One-time suitor will wait for full-year results to decide whether to keep holding.

Ruralco Holdings (RHL) may sell its stake in one-time takeover target Elders (ELD) but will not decide until it sees the group's full-year results in November, The Australian Financial Review reports.

According to the newspaper, the Ruralco board wants to see Elders' results before deciding whether to keep its 12% stake in the company after having a $245 million takeover offer for its rural services division rejected in June.

Elders recently announced a range of cost-cutting measures including branch closures and job losses.

Elders chairman Mark Allison was not concerned about Ruralco's stake and thought Elders could turn its business around, the AFR reports.

Related Articles