Thu, Jul. 14, 12:12 PM
- Monsanto (MON +3.2%) spikes higher after Bayer (OTCPK:BAYRY -0.6%) says it increased its takeover offer for the company to $125/share, after its initial $122 bid was rejected.
- The new offer may make a takeover more palatable for MON shareholders but also prompt concerns among Bayer investors about the German company's deepening financial strain.
- Bloomberg reported yesterday that MON had revived talks with BASF (OTCQX:BASFY +3.4%) about a possible combination of their agrochemicals businesses.
Wed, Jul. 13, 5:17 PM
- Monsanto (NYSE:MON) +1.7% AH following a Bloomberg report that it could look to acquire BASF's (OTCQX:BASFY) agrochemicals unit as an alternative to the proposed and rejected takeover offer from Bayer (OTCPK:BAYRY).
- MON is exploring various transactions, including the potential acquisition of BASF’s ag solutions unit, and in return, BASF likely would receive newly issued shares in MON, according to the report.
- MON’s board is said to be split over the merit of potential deals with rivals BASF and Bayer, with some execs eager to remain independent while others prefer a takeover.
Fri, Jun. 10, 2:42 PM
- Monsanto (MON -1.5%) turns sharply lower following a WSJ report that it rejected a new takeover offer from Bayer (OTCPK:BAYRY -3.4%), in part because it did not include a higher price.
- Bayer recently sent a letter to MON seeking access to information which could prompt it to raise its $62B offer but MON refuses to grant access until Bayer raises its offer, according to the report.
- In the letter, Bayer reportedly said it had lined up financing for the deal and is confident any regulatory obstacles can be overcome.
Tue, May 31, 12:19 PM
- Monsanto (MON +2.2%) pops to highs of the day amid chatter that Bayer (OTCPK:BAYRY +0.3%) will move to increase its $122/share takeover bid as early as this week.
- MON shares, already higher following a Sunday Times report suggesting the company could be receiving an improved takeover bid, extend gains after Street Insider reports Bayer is preparing to offer $135/share, citing "a source claiming to have knowledge of the situation."
- Now read Bloomberg: Bayer meeting with banks on Monsanto funding (May 27)
Wed, May 25, 9:14 AM
- Monsanto (NYSE:MON) +2.2% premarket as Jefferies upgrades shares to Buy from Hold with a $132 stock price target, raised from $95, seeing a $130/share or greater takeover by Bayer (OTCPK:BAYRY) as "highly likely."
- MON's response to Bayer "was far from a full-throated defense" and "benign enough to open the door for more productive discussions," Jefferies notes.
- The firm also believes favorable weather should drive price support for MON in 2017-20.
- Now read Bayer says it can meet Monsanto deal demands
Tue, May 24, 2:00 PM
- Monsanto (MON +2.8%) officially rejects Bayer's (OTCPK:BAYRY +3.5%) $62B takeover offer, confirming earlier reports, but says it remains open to further talks on a deal; shares have reached their highs of the day after a brief trading halt.
- MON calls the $122/share offer "incomplete and financially inadequate" that fails to address potential financing and regulatory risks, but also suggests that a higher bid might be accepted.
- Fox Business News' Charles Gasparino reports that Bayer could go hostile in its bid for MON.
Tue, May 24, 11:03 AM
- Monsanto (MON +2.8%) pops higher following a Reuters report that the company will reject Bayer's (OTCPK:BAYRY +1.5%) $122/share takeover bid and request a higher price.
- While MON sees industrial logic in a combination with Bayer and believes a deal would be approved by antitrust and other regulators, the company also has confidence in its standalone plan and believes shareholders deserve a better offer, according to the report.
- Now read Bayer remains a Buy at Deutsche Bank; says Monsanto deal makes sense
Tue, May 24, 10:36 AM
- Bayer (OTCPK:BAYRY +2.5%) is maintained with a Buy rating and a €124 price target at Deutsche Bank, which says the proposed merger with Monsanto (MON +1.2%) “makes both operational and financial sense.”
- The firm says Bayer’s shares could be significantly volatile in the near term as negotiations for MON play out, but the deal is a good strategic fit and is expected to be 11%-13% EPS accretive in 2019-20, which would contribute towards an annual earnings growth rate in the low-to-mid-teens.
- Deutsche Bank believes a takeover price for MON below $140 per share is reasonable for Bayer, with accretion breakeven at $149-$158.
Mon, May 23, 3:33 PM
- Monsanto (MON +5%) is up 5% to ~$106.70 following Bayer's (OTCPK:BAYRY -4.5%) offer to buy the company, but that's well below the reported takeover price of $122 that Bayer says it is willing to pay, indicating skepticism that the deal will come to fruition.
- Bayer's move defies sharp criticism from some investors (I, II) ahead of the official news of the offer, which CEO Werner Baumann describes as "an uneducated reaction in the media" when deal terms were not yet known, adding that "we are putting forward a very, very full price" for MON.
- But Berenberg analyst John Klein says MON and its shareholders likely will argue that based on 2017 EBITDA expectations, the bid would represent a multiple of only 14x vs. the nearly 16x ChemChina agreed to pay for Syngenta.
- Citi's P.J. Juvekar appears to reflect the consensus view that the chances of a deal becoming finalized have increased with a firm offer on the table but that the first offer likely will not get accepted.
- Bloomberg's Brooke Sutherland believes MON's lack of an outright rejection could signal willingness to negotiate, knowing the 37% premium nearly gets investors back to MON's post-financial crisis high and more than makes up for the drop over the past year as slumping crop prices forced farmers to cut spending.
Thu, May 19, 8:24 AM
- Bayer (OTCPK:BAYRY) investor UBS Global Asset Management says it is "deeply concerned" about the takeover approach to Monsanto (NYSE:MON), saying it would prefer the companies agree to a joint venture or a no-premium merger.
- A UBS fund manager says he was surprised by the takeover approach given the management team was fairly new and settling in, and a recent acquisition in consumer health had yet to be integrated successfully.
- While no takeover price has been mentioned by either company, Bernstein estimates €41.9B ($47B) plus €6.7B in assumed debt, and says Bayer might need a €27B share issue to help fund a deal; Citi analysts have said Bayer may need to pay 14x-16x MON's core earnings, implying a takeover price including debt of €57B-€65B.
- MON +7.6% premarket.
Thu, May 12, 3:37 PM
- Monsanto (MON +8.5%) remains sharply higher though off highs of the day, following headlines that Bayer (OTCPK:BAYRY -4.1%) and BASF (OTCQX:BASFY -1.7%) are considering a possible acquisition of the company.
- Financial Times reports that MON is interested in forming some sort of combination with the agrochemical businesses of either of the two companies but opposes any deal that would turn it into a division of a German company.
- Piper Jaffray analysts say the interest in acquiring MON is mere speculation, seeing a potential joint venture as a more likely outcome as "we believe Monsanto remains committed to building a chemistry business."
- J.P. Morgan believes Bayer would need to raise equity given the size of the deal, and thinks Bayer investors likely would be only lukewarm around the potential deal given limited accretion and investor desire for Bayer to strength its pharma pipeline following recent setbacks.
- Analysts say a MON takeover likely would draw intense scrutiny from global regulators already confronting an unprecedented wave of consolidation in the crop chemicals industry involving the likes of Dow Chemical (DOW +0.8%), DuPont (DD +0.2%) and Syngenta (SYT +0.4%).
- Now read Seed war sparked: Bayer and BASF to battle over Monsanto?
Thu, May 12, 8:13 AM
- Monsanto (NYSE:MON) now +17.7% premarket as Bloomberg reports that Bayer (OTCPK:BAYZF, OTCPK:BAYRY) is exploring a $40B takeover bid for the company.
- Bayer has held preliminary discussions internally and with advisers about how to finance a deal, including potential asset sales, according to the report.
- MON already was moving higher after StreetInsider reported interest in the company from BASF (OTCQX:BASFY).
- A deal would create the world’s largest supplier of seeds and farm chemicals, and boost Bayer and MON amid a wave of consolidation in the industry after Dow Chemical and DuPont announced last year plans to combine operations in a $130B deal while ChemChina agreed in February to buy Syngenta for $43B.
Mon, Apr. 11, 8:24 AM
- Can-Fite BioPharma (NYSEMKT:CANF) announces that its candidate for the treatment of erectile dysfunction (ED), CF602, showed statistically significant full recovery one hour after a single 500 u/kg dose in a preclinical diabetic rat model.
- According to the company, CF602's novel mechanism of action may provide a treatment benefit to patients who do not respond adequately to PDE5 inhibitors [Pfizer's (NYSE:PFE) Viagra (sildenafil citrate), Eli Lilly's (NYSE:LLY) Cialis (tadalafil), Bayer (OTCPK:BAYRY) and GlaxoSmithKline's (NYSE:GSK) Levitra (vardenafil HCl)].
- Last October, the company announced the results from a preclinical study that showed CF602 restored the impaired vascular endothelial growth factor system in the penises of diabetic rats which induced an increase in nitric oxide which resulted in improved penile erection compared to placebo. Its unique mechanism of action is apparently similar to Viagra.
- The company intends to file an Investigational New Drug (IND) with the FDA in Q4.
- Shares are up 7% premarket on increased volume.
- Previously: Can-Fite's CF602 shows Viagra-like action in diabetic rats; shares up 10% premarket (Oct. 22, 2015)
Mon, Mar. 21, 12:59 PM
- Bayer (OTCPK:BAYRY +3.2%) rose more than 3% in Germany today following reports late Friday that Monsanto (MON -1.3%) was interested in its crop science unit, and that the companies discussed possible asset purchases or joint ventures.
- While acknowledging the need for consolidation in the sector, analysts tell WSJ they are skeptical about whether Bayer would be willing to part with the unit; Citi analysts think Bayer’s preferred option would be to retain CropScience, since it wants to transform into a pure life science company, and Equinet analysts also are skeptical about a possible deal unless a buyer offered a substantial premium.
- The reported possible price tag of $30B, or €26.6B, would be 2.6x the unit’s estimated 2016 sales, far below the current sales multiple average of 3.3x for similar assets, according to Warburg Research analysts.
Thu, Feb. 11, 7:21 AM
- Incyte (NASDAQ:INCY) terminates its Phase 3 clinical trial assessing Jakafi (ruxolitinib), in combination with chemo agent capecitabine, for the second-line treatment of advanced or metastatic pancreatic cancer after an interim analysis failed to show sufficient efficacy.
- Based on these data and the interim analysis of the Phase 2 sub-study of Jakafi, in combination with Bayer's (OTCPK:BAYRY) STIVARGA (regorafenib), in patients with metastatic colorectal cancer and high C-reactive protein (CRP), the company will stop all Jakafi studies in solid tumors, including Phase 2 trials in breast and lung cancer. It will also discontinue its dose-finding study of INCB39110 ( a selective JAK1 inhibitor) as first-line treatment for pancreatic cancer.
- Data from all the discontinued trials will be analyzed and shared with the scientific community over the next few months.
- Ongoing studies of Jakafi and selective JAK1 inhibitors in hematology will continue as will those assessing selective JAK1 inhibition in solid tumors based on different hypotheses. These include a series of studies evaluating INCB39110 in combination with Merck's (NYSE:MRK) KEYTRUDA (pembrolizumab) and Incyte's epacadostat and INCB50465. A Phase 1/2 trial will also be conducted assessing INCB39110 plus AstraZeneca's (NYSE:AZN) TAGRISSO (osimertinib).
- Jakafi is a JAK1/JAK2 inhibitor cleared in the U.S. for the treatment of a type of blood cancer called polycythemia vera and a bone marrow disorder called myelofibrosis.
- Shares are off 10% premarket on light volume.
Thu, Jan. 28, 8:59 AM
- Incyte (NASDAQ:INCY) is down 12% premarket on light volume in response to its announcement that it terminated a Phase 2 sub-study, INCB 18424-267, assessing Jakafi (ruxolitinib) or placebo in combination with Bayer's (OTCPK:BAYRY) Stivarga (regorafenib) in patients with relapsed/refractory metastatic colorectal cancer with high C-reactive protein (CRP), a potential new indication for the drug. An interim analysis of the high CRP group revealed that ruxolitinib plus regorafenib failed to demonstrate a sufficient level of efficacy to justify continuing the study.
- Ruxolitinib, a JAK1/JAK2 inhibitor, is cleared in the U.S. for the treatment of a type of blood cancer called polycythemia vera and a bone marrow disorder called myelofibrosis.
- Regorafenib, a kinase inhibitor, is approved for the treatment of colorectal cancer and gastrointestinal stromal tumor.
- Incyte markets Jakafi in the U.S. and Novartis (NYSE:NVS) sells it elsewhere under the brand name Jakavi.
Bayer is a global enterprise with core competencies in the fields of health care, nutrition and high-tech materials. At the same time Bayer creates value through innovation, growth and improved earning power. Bayer HealthCare AG researches, develops, manufactures and markets innovative products... More
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