(Sioux Falls, S.D.)– Ethanol producer Verasun Energy Corporation has retained Morgan Stanley to act in an advisory capacity to evaluate strategic alternatives.
The phrase “strategic alternatives” is often used by companies seeking a buyer, merger or acquisition.
Verasun shares plunged to an all-time low and lost nearly three-quarters of their value Wednesday after the company began a public offering of 20 million shares and said it expects to post a third-quarter loss of atleast 63 million dollars.
The shares gained five cents on Thursday to close at $1.46 but jumped 16 cents, or 11 percent, to $1.62 in after-hours trading.
Verasun said in a statement that it retained the firm in light of strategic interest expressed by multiple parties during its equity offering, which it has now suspended.
Verasun shares have traded between $1.33 and $17.75 in the past year.
Locally, Verasun operates ethanol plants in Hartley and Welcome, Minnesota.
(Story from the Associated Press.).
