Fri, Jul. 8, 12:59 PM
- Chemours (CC +14.9%) spikes on a report that a jury decided that DuPont (DD +2.5%) should pay only $500K in punitive damages to a man who developed testicular cancer after drinking water polluted with the company’s Teflon chemical.
- Chemours fell 21% on Wednesday following news that DuPont was found liable for $5.1M related to the toxic Teflon chemical case and Chemours would pay most of the costs.
Wed, Jul. 6, 4:05 PM
- Chemours (CC -21.6%) plunged during the final hour of trading after DuPont (DD -1.7%) was found liable for a man’s testicular cancer in a test case involving 3,500 lawsuits over a toxic Teflon chemical found in Ohio and West Virginia waters; although DuPont was found liable, spinoff Chemours must bear the cost.
- A Columbus, Ohio, jury returned a verdict today that found DuPont responsible for negligence and $5.1M in associated damages; the jury also found actual malice, meaning the company will face punitive damages.
- In the first related test case last October, a jury awarded $1.6M to a woman who sued over the contamination, and a second case settled on undisclosed terms.
Tue, Jun. 28, 3:39 PM
- Dow Chemical (DOW -2.1%) and DuPont (DD -2.6%) are downgraded to Neutral from Overweight at J.P. Morgan, citing a lack of near term upside potential amid rising risks of contraction in the world's major economic regions, particularly Europe.
- "When recessions arise, oil demand contracts and oil prices decreases; plastics product prices and profit margins then move lower," writes JPM's Jeffrey Zekauskas, adding that under weakening economic conditions, the market likely will ask for a higher risk premium or margin of safety in investing in Dow.
- JPM sees a greater likelihood that Dow and DuPont can be purchased over the next year at comparable or lower share prices.
- The firm cuts its price target for Dow to $50 from $57 and lowers its price outlook for DD to $64 from $73.
Thu, May 19, 11:48 AM
- A Monsanto (MON +4.9%) takeover by Bayer is considered "relatively unlikely" by Jefferies analyst Laurence Alexander, as he expects MON to object to the offer given its conviction in its R&D pipeline and longer-term competitive advantages.
- Alexander thinks shares of Syngenta (SYT -0.5%) and DuPont (DD -0.7%) could be pressured as regulatory scrutiny likely would intensify if MON gets acquired, and BASF (OTCQX:BASFY -1.4%) could fall on investor concerns of a potential counter-bid.
- But the analyst sees a potential MON takeover as positive for shares of Novozymes (OTCPK:NVZMY -0.1%) and FMC Corp. (FMC -0.7%), as "a further roll-up of 'specialty generic' agrichemical assets could entice capital, and FMC would be a plausible anchor for such an attempt."
- Jefferies rates MON as a Hold with a $95 price target.
- Now read Bayer investor "deeply concerned" about move for Monsanto
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?
Tue, Apr. 26, 10:55 AM
- DuPont (DD +2.4%) says it expects the SEC's review of its proposed merger with Dow Chemical (DOW +2.2%) to be completed by the end of June, with the deal closing in October or November.
- "We're in great shape in all our filings in all the jurisdictions around the world - China, Europe, Brazil, obviously the U.S.," CEO Edward Breen said in today's earnings conference call; he did not say when he thought the Justice Department might finish its antitrust review.
- DuPont also says it plans to buy back $2B of shares in 2016, and make the repurchases after the shareholder vote for the deal, expected to be held after completion of the SEC review.
- Breen says DuPont's overhead is down to 1.3% of sales, closing in on his target of 1%, and that the company is on track with plans to eliminate $730M in annual costs this year, with Q1 corporate expenses down 44% from prior-year levels, and overall operating costs falling 7%.
- DuPont is higher after reporting better than expected Q1 earnings and raising its 2016 earnings outlook, citing a weakening of the dollar against most currencies.
- Now read Golden parachutes descend onto Dow, DuPont CEOs
Wed, Apr. 13, 5:36 PM
Wed, Mar. 23, 12:47 PM
- The chemicals industry is on the verge of an "M&A bonanza," driven by strong balance sheets, cheap financing and activist pressures, Deutsche Bank says following a week-long series of meetings with leading U.S. and European chemical companies.
- Deutsche Bank sees the U.S. Gulf coast region as the top global investment region looking ahead, and says North American ethane based ethylene production still maintains a 50%-60% cash cost advantage over European production even though the collapse in oil price has flattened the cost curve.
- Among U.S. majors, the firm maintains Buy ratings on Celanese (CE -1.3%), Dow Chemical (DOW +0.6%), DuPont (DD +0.8%), Eastman Chemical (EMN +0.1%) and PPG Industries (PPG -0.3%); Evonik (OTC:EVKIF), BASF (OTCQX:BASFY) and Linde (OTCPK:LNAGF) are viewed as top potential European buyers of U.S. assets.
Fri, Mar. 4, 5:40 PM
Fri, Mar. 4, 4:38 PM
- DuPont (NYSE:DD) +5.2% AH following a Bloomberg report that BASF (OTCQX:BASFY) is considering a rival takeover bid for the company.
- BASF is working with advisers and banks to examine the merits of making a counter bid for DuPont, which has agreed to a merger with Dow Chemical (NYSE:DOW), according to the report.
- BASF is said to have held talks with DuPont before the merger agreement with Dow, but the talks did not progress.
Wed, Mar. 2, 12:49 PM
- Monsanto (MON -7.5%) sinks after cutting its FY 2016 and Q2 profit outlook, citing weak foreign currencies, increased generic competition and compressed grower margins.
- CEO Hugh Grant says MON may not achieve its target of doubling EPS by 2019 because of the current struggles, and that MON is no longer interested in buying Syngenta (SYT -0.9%) after the latter agreed to be acquired by ChemChina.
- Before MON's announcement, the Bernstein research firm called a bottom in the agricultural cycle, which it sees as positive for MON and Potash (POT +3.4%), as spot potash prices are expected to trend positively during the spring planting season.
- Related tickers: DD -1.2%, DOW -0.8%, AGU -1.2%, CF -3.5%.
Wed, Feb. 24, 3:15 PM
- Chemours (CC +15.1%) surges after the beaten-down spinoff company reached an agreement with DuPont (DD +0.2%) to pay now for future purchases and amend its credit agreement, overshadowing below consensus Q4 earnings.
- After ending FY 2015 with ~$3.6B in net debt, DuPont has paid Chemours ~$190M million this month for future purchases and canceled certain payments CC was required to make related to its separation agreement.
- Chemours also generated strong free cash flow in the quarter, and management guided for modestly positive free cash flow and EBITDA growth in 2016 and reiterated its plan to generate $500M of EBITDA improvements by year-end 2017.
- CC also says it expects to complete its strategic review of the chemical solutions business by June, and is on track to cut $500M in costs by the end of 2017.
Mon, Feb. 8, 3:14 PM
- Dow Chemical (DOW -2.1%) is upgraded to Positive from Neutral with a $54 price target, up from $46, at Susquehanna, even after rising nearly 12% in the past week.
- The firm says it remains positive on the combined company's agriculture segment given Dow and DuPont's (DD -2.6%) pursuit of cost reductions in ag prior to the H2 2016 merger closure, and its expectation of $1.25B of cost (primarily R&D) and $500M of growth synergies.
- The firm says it completed a revised valuation, changing the approach to now "apply the equity ratio to the pro-forma capital structure resulting in a 50/50 split," taking into consideration the Dow-DuPont combined entity.
- DuPont already had been rated Positive by Susquehanna, but now with a lowered price target of $69 from $77.
Tue, Feb. 2, 10:58 AM
- Dow Chemical (NYSE:DOW) CEO Andrew Liveris will leave the company after the completion of its merger with DuPont (NYSE:DD), he says during the company's earnings conference call.
- The move would mark a victory for Dan Loeb, who had called for his removal.
- Earlier: Dow Chemical beats estimates as cost cuts pay off
- DOW +2.8%, DD +2.4%.
Tue, Jan. 5, 7:28 AM
Dec. 18, 2015, 12:17 PM
- Interim Syngenta (SYT +2.1%) CEO John Ramsay tells Dow Jones the company is discussing possible deals with "a number of parties" and is open to combinations with companies including Monsanto (MON +0.9%).
- While Ramsay says MON has not revived its $46B takeover effort that was abandoned in August, his comment that SYT is "interested in any value-adding opportunity that exists for us in this industry, which includes Monsanto and many others" marks a notable departure from its earlier stand.
- Last week's merger between DuPont (DD -0.7%) and Dow Chemical (DOW -0.4%) removed two potential partners for SYT and eventually could pose a greater competitive threat in the ~$100B global seed and pesticide industry.
E.I. du Pont de Nemours & Co. science-based products and services company. It operates through seven segments; Agriculture, Electronics & Communications, Industrial Biosciences, Nutrition & Health, Performance Chemicals, Performance Materials, Safety and Protection. The Agriculture segment... More
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