Vera Sun purchases US Bioenergy

[2002jack]

http://www.marketwatch.com/news/stor...F0400B11297%7D

Well, S.D will have two of three largest ethanol producers in the country, Vera Sun and Poet. My uneducated opinion's of ethanol are mixed. The most positive thing about ethanol are what could happen to our local economy, so I'm cheering for success.

The major players involved with this deal are SDSU graduates, Don Endres (Vera Sun CEO)and Gordon Ommen (US Bioenergy Chairman). Also Jim Morgan, Daktronics CEO, is on the U.S. Bioenergy board. These three gentlemen have lots of money, and lot's of potential to make more money.

I always want to refer to Vera Sun as Avera Sun.

Think about this. Maybe someday we could play games at the Vera Sun Fieldhouse, located in the Avera Health Sports Complex. Or something like that.

[joeboo22]

Re: Vera Sun purchases US Bioenergy

Ya I saw this looked over it and listened to there conference call..... Sounds pretty good, its an all stock agreement so nothing big there... There plants are both built by Fagen Inc. So no problem there..... This move will make them, ADM and Poet the largest three by far.... all 2 will be in the 1.8-1.6 billion gallon mark.... The big thing with the agreement is that Verasun has corn oil extraction which is expensive but will add 10-15 cents to a gallon of ethanol while US bio has a marketable distillars grain that Verasun doesn't.... The move allows them also to put money in technology because its easier to pass it on when you are producing that many gallons..... I knew that acquesitions were coming but this one surprised me.... Here is what I see coming in the next 6 quarters

1. ADM will buy Pacific Ethanol... Pacific ethanol stock has plummeted because Bill Gates is selling his share; ADM could pick up the ethanol producer of the west for a relatively cheap price.
2. Poet will buy Glacial Lakes... both still private and Glacial Lakes stock holders want a change, also expect them to buy some smaller plants.
3. The New Verasun will buy Cargil.... Cargil has a small hold of about 2% and I think they want to sell it. Verasun baught 3 110mgpy plants that had Cargil ties earlier this year.

just guesses though.