Nearly three weeks after the Dutch giant Rabobank Group announced a blockbuster deal to acquire Farm Credit Services of America in Omaha, another Farm Credit System lender has made a counteroffer.
AgStar Financial Services of Mankato, Minn., said Wednesday that it is willing to pay $650 million in cash, or $50 million more than what Rabobank is paying.
Rabobank announced July 30 that it was buying the $7.8 billion-asset Farm Credit Services. The deal would be the first in which a commercial bank buys a government-sponsored enterprise.
The $2.8 billion-asset AgStar, which has made no secret of its interest in Farm Credit Services, said its offer would be better for shareholders, because they would receive future dividends if Farm Credit Services remained in the Farm Credit System.
