New York-based agricultural investment firm Continental Grain Co. received approval from the Federal Trade Commission to increase its stake in agribusiness Bunge Ltd., adding pressure on the food company to sell itself, The Wall Street Journal reported March 5, citing people familiar with the matter.
Bunge is already in talks to sell itself to Archer Daniels Midland Co., but the deal is facing a plateau amid regulatory issues, the report said.
The filing secured by Continental is reportedly often a precursor to an activist campaign.
Continental Grain told regulators Feb. 14 that it wanted to engage "more actively" with Bunge's management. Continental, which reportedly owns about 1.2% stake in Bunge, has pressured companies in the past, including Smithfield Foods Inc., which was eventually acquired by Shuanghui International Holdings Ltd, the report added.
