KUALA LUMPUR--Global commodities trading house Louis Dreyfus
invested less than originally planned in Felda Global Ventures
Holdings Bhd.'s $3.1 billion initial public offering, two people
familiar with the matter said Friday.
Louis Dreyfus said earlier it would take a 2.5% stake in the
Malaysian state-run plantation firm as a "strategic investor."
However, it now has just a 0.5% stake.
The people familiar with the matter said the move is due to a
delay in finalizing an agreement on a planned trading and logistics
joint venture.
Separately, Felda said in a statement Louis Dreyfus has secured
all the approvals necessary to become a strategic investor, but it
"may scale back" its investment.
It said the possible decision is due to the strong demand for
its IPO shares.
Felda IPO shares had been earmarked for Louis Dreyfus will be
allotted to other investors, one of the people said.
Write To Jason Ng at jason.ng@dowjones.com