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Bunge overhaul is latest shake-up for struggling grain sector

CHICAGO (Reuters) - Global grain trader Bunge Ltd's sweeping plans to overhaul its business and cut costs may not be enough to compensate for weak earnings and could still leave it vulnerable to a new bid from diversified rival Glencore PLC.

Bunge, the smallest of the listed global grains traders, rebuffed a bid from Glencore in May but its admission on Wednesday that second quarter earnings would disappoint has opened up the possibility that Glencore might make another approach, analysts said.

"To the extent that they underperform expectations, it's more likely that someone will look to acquire them or do some sort of transaction with them," John Rogers, senior vice president at Moody's, told Reuters.

If Glencore, whose market capitalization is more than five times Bunge's $11 billion, does make a second attempt and is successful, it would be the industry's largest shake-up in decades and redraw the global food supply chain.

"The Glencore bid has made companies across the agribusiness space look at their assets in a new light, with a focus on return...


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