By Keira Wright 

(Bloomberg) -- Namoi Cotton Ltd.’s independent directors have unanimously recommended that shareholders accept Louis Dreyfus Co.’s takeover offer and reject a proposal from Olam Agri Holdings Ltd.

Despite being marginally higher than Louis Dreyfus’ bid, Olam’s offer price is insufficient given the greater uncertainty associated with it, Namoi’s independent directors said in an exchange filing on Wednesday.

Rival agricultural trader Olam and Louis Dreyfus have been jostling to buy the Australian cotton processor since January, and both bids have raised competition concerns. 

Louis Dreyfus received approval from Australia’s Foreign Investment Review Board last week after the global crop trader agreed to measures that would allay some concerns. The Australian Competition and Consumer Commission is still assessing the Olam Agri bid and is expected to make an announcement on Oct. 31.

Louis Dreyfus, which already has a 20% stake in Namoi, values the cotton processor at A$138 million ($91.8 million). Olam Agri’s offer values the company at around A$144 million. Dreyfus’s offer is scheduled to close on Sept. 13.

Olam Agri didn’t immediately respond to a request for comment. 

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