UPDATE 3-ADM's $2.8 bln GrainCorp bid seen flushing out more offers
* GrainCorp shares surge more than 40 pct to top ADM offer
* Bid comes amid global consolidation in grains sector
* Potential rival bidders include Bright Foods, Bunge, Wilmar, Louis Dreyfus
* Bid undervalues GrainCorp - analysts
By Narayanan Somasundaram
SYDNEY, Oct 22 (Reuters) - U.S. agriculture giant Archer Daniels Midland has bid $2.8 billion for GrainCorp , sending shares in Australia's last independent grains handler soaring, as markets bet on a higher offer price or rival bids being flushed out.
ADM's bid comes at a time of consolidation in the global grains sector amid intense competition for grains trading power to feed fast-developing countries seeking food security.
Australia is a coveted market with a stable policy regime and good links to Asia. After a string of deals GrainCorp is the last available asset, which can give full access to the world's second-biggest wheat exporter.
"The market is clearly speculating the offer won't be successful as it is. There is hope for rival offers or a higher price to seal the deal. It is very early days," said Paul Xiradis, chief executive at fund manager Ausbil Dexia, which owns shares in the Australian grains group. Continued...