Warren Buffett may look at Archer Daniels Midland Co for acquisitions

NEW YORK: Billionaire Warren Buffett may look at Archer Daniels Midland Co, the world's largest grain processor, as his Berkshire Hathaway Inc seeks more acquisitions. ADM, based in Decatur, Illinois, is the “kind of company we look at,'” Berkshire Hathaway Chairman Buffett said on Bloomberg Television's “In the Loop” with Betty Liu today. General Dynamics Corp and Exelon Corp. are also the types of companies he finds attractive, Buffett said in an interview from Sun Valley, Idaho. Buffett says Berkshire, based in Omaha, Nebraska, doesn't currently have any acquisitions in the works, but he “hopes” to see a deal by the end of the year.

ADM fell 10 cents to $30.35 at 11.18 am in New York Stock Exchange composite trading after earlier rising as much as 1.8 percent to $31 following Buffett's comments . The company, with a $19.4 billion market-value , has risen 1.1 per cent this year. ADM is among companies that meet the acquisition criteria listed in Buffett's annual letter, according to data compiled by Bloomberg in March. Buffett typically prefers “simple” businesses with pretax profit exceeding $75 million , “consistent” earning power, and “good” returns on equity while employing little or no debt, according to his report.

As Berkshire has grown, Buffett has shifted his takeover strategy to focus on capital-intensive businesses , such as power producers and railroads, which require consistent investment in infrastructure and equipment. Buffett's son, Howard Buffett, worked at ADM from 1992 to 1995, serving as a director and the company's head of investor relations. ADM is expected to earn net income of $2.18 billion, in fiscal 2011, up from $1.93 billion a year earlier, according to four analysts' estimates compiled by Bloomberg. The company will report earnings for fiscal fourth quarter, which ran through June, on August 2.