Olam International has raised the stakes on New Zealand Farming Systems Uruguay again, upping its takeover offer for the company from 55 cents to 70.

The counter-offer comes after Uruguayan company Union Agriculture Group bettered Olam’s initial offer by 5 cents a share, and a mystery third bidder entered the race looking for a minority stake.

The new Olam bid has been strengthened by the news that ACC has agreed to sell the Singapore-based company its 7% stake.

Business commentator Brian Gaynor says the offer puts Olam in the box seat.

“Olam is definitely in a stronger position because the ACC was going to be a key to the outcome of this takeover battle. With ACC accepting the Olam offer…I think it gives Olam a much better chance now of reaching 50 per cent.”

Mr Gaynor says ACC’s decision to go with Olam shows the appeal of money up front.

“Obviously people like the ACC and PGG Wrightson have decided...that 70 cents is a good price and that’s what they’re willing to sell at and not have to participate in any further capital raisings.”

Olam already has an 18.5% stake in Farming Systems. PGG Wrightson has agreed to sell its 11.5% share to Olam if it can secure a majority.