ABB AusBulk Merger Talks End

SYDNEY - Mar 3/04 - SNS -- Merger talks between the Australian barley marketing board, ABB Grain Ltd., and AusBulk Ltd. ended because the companies could not agree on one another's valuation.

ABB said a further unresolved issue was the position of AusBulk’s major shareholder, United Grower Holdings, in the entity post-merger.

ABB chairman Trevor Day said that ABB’s directors remain strongly focussed on strengthening ABB’s business base whilst exploring the considerable growth opportunities that exist within Australia and offshore.

The failure of the talks will now allow AusBulk Ltd. to focus on listing the company's shares on Australian stock exchanges. John Murray, AusBulk's managing director, believes the company will look good to stock traders because it managed to post an $11.1 million profit during the fiscal year ending September 30, 2003 even as other companies reported losses on account of the severe drought of 2002-03.

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