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.