UPDATE 1-Bunge to buy Corn Products for $4.4 bln -WSJ

(Adds details on cost savings, valuation)

NEW YORK, June 23 (Reuters) - U.S. fertilizer producer and oilseed processor Bunge Ltd (BG.N) has agreed to buy Corn Products International Inc (CPO.N) for $4.4 billion in stock, The Wall Street Journal reported on Monday, citing people familiar with the matter.

The deal is a sign that rising global demand for food is pushing big agriculture to look for increased scale, the Journal said. The deal would unite two of the oldest U.S. agricultural businesses and establish Bunge as a big player in finished corn products such as starches and sweeteners, the Journal said.

It also would give Bunge a larger presence in big markets like North America and South America as well as markets where it is not active such as South Korea, Thailand and Pakistan, the Journal reported.

Bunge would exchange each share of Corn Products for $56 in stock, the Journal reported, saying the deal would represent a 31 percent premium to the Corn Products closing share price of $42.90 on Friday and a 25 percent premium to the stock's average price over the last 20 trading days.

Bunge also plans to raise its 2008 earnings forecast to $9.35 to $9.65 per share from $7.10 to $7.40, not counting the effects of the acquisition, the Journal reported.

Analysts were expecting Bunge to earn $7.59 a share in 2008, according to Reuters Knowledge.

Bunge expects the deal would lead to annual synergy benefits of $100 million to $120 million, the Journal reported, with savings on the commercial side through joint sales efforts and combining risk-management, or hedging operations, as well as other means.

Bunge is paying nine times Corn Products' expected 2008 earnings before interest, taxes, depreciation and amortization -- or EBITDA, the Journal reported. That is roughly in line with other recent transactions in the sector, it said. The deal would be valued at $4.8 billion, including debt, the paper said.