Is valero energy looking to buy verasun energy?
Yes, they are going over the tax information now….assessing tax vs. book value and such. Talks have been going on for months, ever since corn prices started to rise during summer 2008. Since filing for bankruptcy the talks have come to the public’s attention. Verasun is now devalued and cheaper to buy, but a steal with the leading ethanol production capacity of 1.75 billion gallons/year. Ethanol production is mandated by the federal government in the form of legislative statutes outlining current amounts to be blended with gasoline…this amount is set to increase every year. The only issue is the warranties on vehicles that allow for no more than 10% ethanol to be blended or the warranty will be void. This problem may dissolve with the “big three” automakers in trouble and new ideas greatly needed. Verasun already has bigtime deals with Ford and Chevy with regards to the flex-fuel vehicles and the promotion of environmentally friendlier vehicles. There have also been talks about giv
