CSR, the Australian group, is all set to turn down a $1.5 Billion takeover bid from China's Government-backed Bright Food Group for the purchase of its sugar business, stating that it would prefer to stand-by the previous de-merger plan.

In June 2009, CSR, which also manufactures building material, had announced its plans to spilt its sugar and renewable energy units into a separate firm altogether.

The group's sugar unit made up for about 60% of Australia's total 4.2 million tons of output of the commodity in 2009.

Experts are of the opinion that the rejection of the bid is more likely to attract interest from overseas food companies, including giants like Brazil's Consan, Bunge Ltd and Cargill.

"[CSR's] statement is a tactic which, rather than discourage buyers, will cause them to be more forthright in putting forward both a stronger offer and a more formal offer. The last week has shown us there's clearly interest such as this at a global level", said White Funds Management portfolio manager Angus Gluskie.