Memphis cotton giants mull merger

By Geert De Lombaerde Posted on August 7, 2009 at 7:15 am

Allenberg and Dunavant, two of the biggest players in Memphis’ corporate scene, are in talks about combining their operations, a move that would create a company with more than $3 billion in sales and further shake up what has been a volatile sector of late.

At least three major merchants faced financial difficulties after the benchmark cotton price in New York jumped to a 12-year high in March 2008 and then plunged to the lowest since June 2002, according to Mike Stevens, a Swiss Financial Services analyst. The credit crisis and recession also worsened the situation as banks curbed lending, analysts said.

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Tags: Allenberg Cotton Co., commodities, Dunavant Enterprises Inc., Memphis, mergers, Swiss Financial Services AG  

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