VeraSun cancels 20 million share issue, retains Morgan Stanley to explore “strategic alternatives”

In South Dakota, VeraSun Energy cancelled the 20 million share issue it announced earlier this week, and retained Morgan Stanley as advisor as it explores “strategic alternatives” the company said in a statement.The company said that it had received interest from unnamed parties following announcement of its share issue.

The company announced that it would record a loss of up to $103 million this year after it locked in a corn price of nearly $8 per bushel following the Midwestern flooding. The price of corn fell to below $5.50 after corn forecasts improved with better weather. The company operates 15 operating ethanol plant and will have 1.64 billion gallons of capacity by the end of the year following completion of a 16th facility. The identities of interested strategic investors or buyers was not disclosed.

Free Subscription to the Daily Biofuels Digest e-newsletter

Related Stories

Morgan Stanley projects 20 percent rise in corn, soybean prices in 2008

Morgan Stanley is projecting that corn and soybean prices will increase 20 percent in 2008, to $6 per bushel for corn and $18 per bushel for soybeans. The Morgan Stanley research team said "U.S. produ...

Morgan Stanley says ethanol price outlook is improving; ethanol stocks jump

A Morgan Stanley analyst issued an improved short-term outlook for ethanol prices, promoting recovery in the share price of pure-play ethanol stocks such as Pacific Ethanol.  On the news, Aventine ...

Range Fuels expands second round financing to $166 million as Morgan Stanley joins group

In Colorado, Range Fuels has expanded its second-round financing from $100 million to $166 million after Morgan Stanley joined the Series B offer. Financing will be used for construction of the compan...

Missouri’s Prairie Pride retains RBC Bank for financing, strategic initiative search

In Missouri, RBC Bank announced that its investment bank unit was retained by Prairie Pride to explore strategic initiatives and financing options.  Missouri-based cooperative Prairie Pride has 21 mi...

Kinder Morgan to test 336,000 gallon batch of ethanol through conventional pipeline in Florida

In Florida, Kinder Morgan Partners announced that they plan to test the transport of a 336,000 gallon batch of ethanol through its 105-mile gasoline pipeline between Orlando and Tampa.  The test is a...

VeraSun Energy issues 20 million shares to shore up capital; Aventine says will issue debt, shares or delay expansion, as liquidity crisis hits biofuels

In Illinois, Aventine Renewable Energy (AVR) said that it would issue new debt and shares, or delay expansion plans, to rebuild its capital base, and VeraSun Energy (VSE) issued 20 million new shares ...