Archer Backs Out of Venezuelan Purchase

          By BLOOMBERG NEWS

               CARACAS, Venezuela -- The Archer Daniels Midland Company
               has called off the planned purchase of Venezuelan food operations
          of the International Multifoods Corporation -- the latest setback to
          investor confidence in Venezuela.

          "A.D.M.'s decision to not proceed with the acquisition of Venezuela
          Foods was directly related to the current economic and political
          uncertainty in Venezuela and not to the underlying value of the Venezuelan
          foods business," International Multifoods' chairman and chief executive,
          Gary Costley, said Tuesday.

          The company, based in Wayzata, Minn., is the largest United States food
          distributor to vending machines. It said the unit would be sold as soon as
          practical; two weeks ago, it said the sale was proceeding without
          complications.

          Archer Daniels is the latest company to decline to invest in Venezuela,
          whose economy has been hurt by soaring interest rates, a banking crisis
          and big cutbacks in public spending as the result of low world prices of
          oil, the major export.

          Some concern about political stability has also been expressed.
          Venezuelans elect a new president on Dec. 6, and the front-runner, Hugo
          Chávez, has put some investors on edge with remarks about possibly
          changing the country's free-market policies.