To: Maurice Winn who wrote (58473 ) 1/14/2010 4:07:23 AM From: elmatador Respond to of 217588 Aussies also selling! We created the market. Aussies ride out our coat tails. Nothing wrong with that. But look how they do it. Australia, the world’s third-biggest sugar exporter, offers international companies a more stable political and economic environment and greater financial and legal transparency than Brazil, the largest producer, analysts led by Simon Thackray at RBS, wrote in a report dated yesterday. Cosan, Bunge May Bid for CSR Sugar Unit, RBS Says (Update1) Share Business ExchangeTwitterFacebook| Email | Print | A A A By Wendy Pugh Jan. 14 (Bloomberg) -- Cosan, Bunge Ltd. and Cargill Inc. may seek to buy CSR Ltd.’s sugar unit after China’s Bright Food Group Co.’s A$1.5 billion ($1.4 billion) offer underlined global demand for sugar assets, RBS Equities (Australia) Ltd. said. Australia, the world’s third-biggest sugar exporter, offers international companies a more stable political and economic environment and greater financial and legal transparency than Brazil, the largest producer, analysts led by Simon Thackray at RBS, wrote in a report dated yesterday. “High valuations displayed for Brazilian assets reveal the strong demand for sugar assets shown by large multinational sugar and agribusiness firms,” RBS said. “We see this demand as a long-term play on a rising soft commodity cycle and the source of a potential rival bidder to Bright Food.” CSR, Australia’s second-largest maker of building materials, has been seeking to sell the unit to take advantage of surging sugar prices. Bunge Ltd., the world’s second-largest trader of the sweetener, agreed Jan. 12 to pay about $240 million to acquire additional interests in the Moema Group mills in Brazil, adding to the 7.3 million shares the U.S.-based company agreed to buy last month for a 60 percent stake. CSR declined 0.8 percent to A$1.98 on the Australian stock exchange at the 4:10 p.m. Sydney time close, after surging to a 14-month high of A$2.13 on Jan. 12 when Bright Food announced its offer. Archer Daniels Midland Co.,Suedzucker AG, and Tate and Lyle Plc may also be interested in the unit, RBS said. Demerger Target CSR, based in Sydney, today reaffirmed its target of spinning off its sugar business from its aluminum and building material operations by March 31. Bright Food’s offer was “merely an expression of interest” and wasn’t capable of acceptance, it said Jan. 12. The first court hearing for the demerger was postponed from tomorrow while it completes documentation and may now take place next week, CSR said today in a statement. Work on the demerger should continue, while the A$1.5 billion price tag placed on the company by Bright Food would “promote investor comfort,” RBS said. The bank raised its share price forecast for CSR to A$2.21 from A$2.18. To contact the reporter on this story: Wendy Pugh in Melbourne wpugh@bloomberg.net.