HC2 Holdings Inc., the investment company run by former hedge fund manager Philip Falcone, made an unsolicited $1.04 billion takeover offer for U.S. grain merchant and ethanol producer the Andersons Inc. (Nasdaq: ANDE).

HC2 outlined the $37-a-share bid Tuesday in a statement that also reprinted a letter from Falcone to Andersons Chairman Michael J. Anderson. Herndon, Virginia-based HC2 said in the letter it had expressed an interest in Andersons since January, but the company had rejected its offer as too low. Falcone said HC2 has a "qualified strategic partner" lined up to complete the deal.

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