UPDATE 1-ADM advances takeover of Australia's GrainCorp

Wed May 1, 2013 5:58pm EDT

CHICAGO May 1 (Reuters) - Archer Daniels Midland Co on Wednesday said it completed due diligence on GrainCorp Ltd and intends to move forward with a cash offer to acquire the Australian grain handler.

GrainCorp's board, which rejected two earlier offers from ADM during a six-month courtship, last week backed a revised A$13.20 a share deal that included A$1.00 a share in dividends.

The deal needs regulatory approval.

ADM, one of the world's top grain traders, on Wednesday reported lower-than-expected earnings for the first quarter ended March 31, citing lingering pressure from a U.S. drought that slashed harvests last year.