FERRUZZI DEAL WITH CPC WORTH 630 MLN DLRS

  The Ferruzzi Group's holding company
  Agricola Finanziara SpA will pay 630 mln dlrs for the European
  corn wet milling business of CPC International Inc under the
  agreement reached in principle between the two companies, a
  statement by Ferruzzi released by its Brussels office said.
      When CPC announced the agreement yesterday in New York, it
  said only that the price would be in excess of 600 mln dlrs.
      Ferruzzi said the deal is subject to agreement on several
  clauses of the contract and needs government authorisations.
      It said the deal would involve 13 starch factories
  employing about 5,000 people in eight European Community
  countries plus facilities and commercial operations in other EC
  states.
      The factories have a capacity to produce the equivalent of
  1.6 mln tonnes of starch in starch and by-products a year, or
  about one third of EC production, from about 2.7 mln tonnes of
  cereals.
      Ferruzzi said the acquisition of these assets would extend
  its presence in the European agro-industrial industry both
  geographically and in terms of products.
      It said it is already the principal EC producer of sugar
  and of soya oil and cake, and the major cereal trader.
      It noted that EC output of isoglucose is subject to maximum
  quotas, of which CPC currently holds a 25 pct share, and said
  it foresaw an increase in other industrial uses of starch in
  the future, notably in the production of ethanol for fuel.
      Raul Gardini, president of the Ferruzzi Group, said the
  present management of the CPC milling business will be asked to
  remain in their posts.
  

