Ruralco Holdings Limited
(ASX:RHL) is considering selling its stake in Elders Limited
(ASX:ELD) but won’t decide until it sees the group's full-year results in November, according to media reports.
The Ruralco board wants to see Elders' results before deciding whether to keep its 12 per cent stake in the company after a $245 million takeover offer for its rural services division was rejected in June.
Elders recently announced a range of cost-cutting measures including branch closures and job losses.
Elders chairman Mark Allison told media he was not concerned about Ruralco's stake and thought Elders could turn its business around.
Ruralco produced a net profit of $1.6 million in the first half of the 2013 financial year.
