Archer Backs Out of Venezuelan Purchase
By BLOOMBERG NEWS
CARACAS, Venezuela -- The Archer Daniels Midland Company
has called off the planned purchase of Venezuelan food operations
of the International Multifoods Corporation -- the latest setback to
investor confidence in Venezuela.
to not proceed with the acquisition of Venezuela
Foods was directly related to the current economic and political
uncertainty in Venezuela and not to the underlying value of the Venezuelan
foods business," International Multifoods' chairman and chief executive,
Gary Costley, said Tuesday.
based in Wayzata, Minn., is the largest United States food
distributor to vending machines. It said the unit would be sold as soon as
practical; two weeks ago, it said the sale was proceeding without
is the latest company to decline to invest in Venezuela,
whose economy has been hurt by soaring interest rates, a banking crisis
and big cutbacks in public spending as the result of low world prices of
oil, the major export.
about political stability has also been expressed.
Venezuelans elect a new president on Dec. 6, and the front-runner, Hugo
Chávez, has put some investors on edge with remarks about possibly
changing the country's free-market policies.