The unexpected bid from Long-Term Asset Partners builds in a considerable share price premium to Graincorp’s current price but investors should be in no hurry, says Morningstar.

GrainCorp (ASX: GNC) shares surged by more than third after the drought-hit grain handler received an all-cash $2.38 billion takeover bid from little-known asset manager Long-Term Asset Partners.

GrainCorp’s board said on Monday it would engage with LTAP with regard to an ongoing portfolio review of the company, and also assess merits of the proposal, which involves a buyback of $10.42 per share.

Drought and higher energy costs shrivelled GrainCorp’s full-year balance sheet in 2017/18

This is a view shared by Morningstar’s director of equity research -…