AgStar to Buy FCSA Maybe

AgStar Financial Services, Mankato, Minn., has made a counter-offer to acquire Farm Credit Services of America, Omaha, Neb.FCSA has entered into what is turning out to be a controversial agreement to be acquired by Dutch banking company Rabobank. Under the AgStar offer, FCSA shareholders will continue to own and control their lending association, retain borrower rights and protections, receive a cash distribution of $650 million and ongoing patronage allocations in future years. AgStar president and chief executive Paul DeBriyn said, "Since the Rabobank acquisition offer was announced July 30th, we have been struck by the level of opposition to this deal expressed by Farm Credit Services of America stockholders and customers, as well as farm leaders and public officials. People have told us that not only did the board sell FCSA too cheap, but they are also deeply concerned about losing their ownership, voting control, borrower rights and protections along with other benefits they have come to value as a member of the Farm Credit System." A spokeswoman for FCSA said the company has not yet received the proposal from AgServices. When it does, its senior leaders will work with its board of directors to review it.