Australia's AWB says no plans for rights issue

SYDNEY, May 20 (Reuters) - Australian wheat exporter AWB Ltd (AWB.AX) said on Wednesday it does not plan a rights issue and still sees synergies for a merger with rival ABB Grain (ABB.AX).

"We still have a lot of room around our balance sheet," Managing Director Gordon Davis told reporters. "Our operations at this time are not restrained for capital."

AWB also reported a 62 percent drop in first-half profit to A$8.5 million ($6.6 million) from A$22.3 million in the same period last year, in line with its earlier forecast. (Reporting by James Regan)