South Australian agribusiness Elders rejects Ruralco bid, enters into exclusive sale talks with Futuris Automotive bidder AGRIBUSINESS Ruralco has withdrawn its "fully funded" bid for South Australian rival Elders' rural services arm following its rejection. Elders shares were smashed in trading today - down 22 per cent so far to 7c at 1500 AEST, while Ruralco's shares were down 3 per cent to $3.32 on an overall bleak trading day. This morning, Elders said it had entered into exclusive negotiations for its automotive business and rejected Ruralco's offer for its rural services arm. The company said it had received various proposals for its two operating businesses - Futuris Automotive and Elders Rural Services. It has now entered into a "short period of exclusive negotiations" with one of three bidders for Futuris. The company also rejected a bid for ERS - made by Ruralco although Elders did not name the company - saying the offer is "inadequate with respect to value, execution risk and other considerations." In a statement this afternoon, Ruralco said it has "applied a disciplined approach to its evaluation of ERS and is only willing to pursue a transaction that is value accretive for shareholders." Ruralco said it has formally withdrawn its offer, voiding the offer and any associated funding. The rejected suitor said it "will continue to execute on its strategy of broadening the company's operating platform and geographical presence." Last month, the Australian Competition and Consumer Commission said it would not oppose Ruralco's acquisition of ERS. The businesses have been up for sale to help Elders reduce its debt. Elders had been evaluating the bids for both businesses since Friday under a trading halt. Elders said it continued to have the support of its bankers to consider alternative strategies for ERS, including continuing discussions with interested parties, or restructuring or refinancing.