Iowa Public Television


FCSA To Pay $10 Million To Rabobank

posted on December 3, 2004

Farm Credit Services of America must pay Dutch-based Rabobank $10 million as part of a settlement for breaking a merger agreement earlier this year.

FCSA board chairman Paul Folkerts said in a news release this week that the board had "carefully considered the prospects of extended negotiations to resolve this matter and determined that it was in the best interest of (FCSA) to settle all outstanding issues with Rabobank over the termination of the merger agreement."

According to the original merger agreement between the two companies, FCSA could have faced a $13.5 million early termination fee.

The settlement requires Omaha-based FCSA to make four installments of $2.5 million to Rabobank over the next year.

Tags: agriculture banks credit news