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Monsanto Company (MON)

  • Wed, Nov. 18, 2:23 PM
    • Syngenta (SYT -3.7%) and other major players in the seeds and crop chemicals industry are in active discussions about potential tie-ups, Financial Times cites Chairman Michel Demare as saying in an interview.
    • Conversations among the leading companies in the sector were "extremely active... "We are all convinced that [the sector] will look quite different in six months," Demare says.
    • The comments come after Monsanto (MON +1.4%), which withdrew a bid to take over SYT earlier this year, said yesterday it was discussing whether to acquire or merge with major rivals in the seed and agrochemical industries.
    | Wed, Nov. 18, 2:23 PM | 2 Comments
  • Tue, Nov. 17, 2:32 PM
    • Monsanto (MON -0.8%) top execs are discussing whether it should try to acquire agrochemical rivals, including another potential run at Syngenta (SYT +6.8%), MON President Brett Begemann says.
    • The internal discussions, ongoing since MON abandoned its $46B offer for SYT in August, include weighing the benefits of bidding for rivals such as Bayer CropScience (OTCPK:BAYRY +1.1%), Reuters reports.
    • MON expects its profit growth will reach 20%/year, and says it does not need a big acquisition to achieve its previously reported goal of doubling earnings to more than $10/share by 2019, Begemann also says.
    • Earlier: Syngenta pops on news of another Monsanto approach
    | Tue, Nov. 17, 2:32 PM | 2 Comments
  • Tue, Nov. 17, 11:27 AM
    | Tue, Nov. 17, 11:27 AM | Comment!
  • Wed, Oct. 21, 2:19 PM
    • Syngenta (SYT +6.4%) will continue to review its seed portfolio and look for deal opportunities but does not plan to engage Monsanto (MON +0.7%) on takeover talks, Chairman Michel Demaré tells Dow Jones in an interview following the sudden resignation of CEO Mike Mack.
    • MON's proposal was financially risk and too low, Demaré says, and its rejection was "a unanimous decision" by SYT's board.
    • SYT will be proactive in looking for openings to make its own acquisitions or seek to buy pieces spun off if rivals combine, Demaré says.
    • Mack's exit did not arise from a difference over the company's strategy or its rejection of MON's takeover offer, the CEO adds.
    | Wed, Oct. 21, 2:19 PM | 5 Comments
  • Wed, Oct. 7, 9:17 AM
    • Monsanto (NYSE:MON) -4.6% premarket after reporting FQ4 earnings and revenues that missed expectations, as corn seed sales continue to weaken.
    • MON says it plans to cut 2,600 employees over the next two years, ~12% of its global workforce, with the aim of generating $275M-$300M in annual savings.
    • MON also plans some restructuring actions costing an estimated $850M-$900M, and announces a new $3B stock buyback program.
    • MON forecasts FY 2016 EPS of $5.10-$5.60 vs. $6.24 analyst consensus estimate; "it’s hard to see where growth will come from next year. The seed environment doesn’t seem entirely robust here or in South America,” says Monness Crespi analyst Chris Shaw.
    • Says FY 2015 results reflected Y/Y ongoing EPS growth of 10%, or ~17% on an ongoing currency neutral basis, despite the downturn in the agriculture cycle.
    • For FQ4, MON says corn sales, its biggest source of profit, fell 5.1% Y/Y to $598M, and soybean sales dropped 19% to $162M; sales in the agricultural productivity segment, which includes the Roundup brand weed killer, fell to $1.1B from $1.25B.
    • FQ4 gross margin fell to 42% from 47%.
    | Wed, Oct. 7, 9:17 AM | Comment!
  • Wed, Oct. 7, 9:14 AM
    | Wed, Oct. 7, 9:14 AM | 4 Comments
  • Wed, Aug. 26, 4:58 PM
    • Monsanto (NYSE:MON) finished +8.5% today after dropping its bid for Syngenta, and Citigroup maintains its Buy rating on the stock as management "showed discipline" by ending the process.
    • With the offer now off the table, MON said it plans to resume repurchasing its own shares, and Citi says the commitment to return capital to shareholders could alleviate fears that MON will quickly undertake another major transaction; MON has ~$4B remaining on its two-year, $10B share repurchase program announced in mid-2014.
    • Although the macro ag backdrop is challenging with farm incomes falling and low grain prices, Citi says MON remains "well positioned as the strongest seed company with the best R&D pipeline in the industry."
    | Wed, Aug. 26, 4:58 PM | Comment!
  • Wed, Aug. 26, 12:40 PM
    • Syngenta (SYT -11.5%) shareholders are calling on the board to clarify how it intends to make up billions of dollars of lost shareholder value after Monsanto (MON +8.6%) abandoned its takeover bid.
    • "We need the board and the management to explain their Plan B," says Pauline McPherson, co-fund manager of Kames Capital's global equity fund, which holds SYT shares.
    • Other investors question why SYT's management were so reluctant to open their books
    • MON's $46B bid is the largest pulled deal since Valeant Pharma's November 2014 withdrawal of its $54B offer for Allergan.
    | Wed, Aug. 26, 12:40 PM | 8 Comments
  • Wed, Aug. 26, 10:52 AM
    • Monsanto (MON +6.5%) says it is no longer pursuing a combination with Syngenta (SYT -15%) after a new bid was rebuffed; shares resume trading after a halt.
    • MON says SYT has told it that the company's enhanced proposal did not meet expectations, thus it will continue to focus on growth opportunities built on its existing core business.
    • MON says its latest proposal increased the cash component of the proposed takeover to 245 Swiss francs/share and maintained the same number of shares as in its April proposal; the revised proposal translated to a value of 470 Swiss francs/share.
    | Wed, Aug. 26, 10:52 AM | 7 Comments
  • Tue, Aug. 25, 2:14 PM
    • Monsanto (MON -2.8%) and Syngenta (SYT -3.1%) are sharply lower after CNBC's David Faber reported earlier about growing opposition among MON shareholders to its continued approach for SYT.
    • Reports yesterday indicated that MON had increased its offer for SYT to 470 Swiss francs, up from 449 earlier, and upped its break-up fee by $1B to $3B.
    • Faber says he is "hearing significant opposition" to the deal from some major MON shareholders and expects them to relay their concerns to the company soon.
    | Tue, Aug. 25, 2:14 PM | 3 Comments
  • Mon, Aug. 24, 12:23 PM
    • Syngenta (SYT +9.3%) spikes higher after Bloomberg reports that Monsanto (MON -1.2%) has made an increased takeover offer to the Swiss company in the hopes of enticing it the negotiating table after MON's earlier approach was rejected.
    • The latest offer values SYT at ~470 Swiss francs/share ($503) in cash and stock, compared with the 449 francs MON offered earlier this year, according to the report.
    • MON's proposal is said to contain a higher proportion of cash than the prior bid, which envisioned a split of 45% cash to 55% shares, and its proposed fee to be paid if antitrust regulators block the deal has increased to $3B from the previously promised $2B.
    | Mon, Aug. 24, 12:23 PM | 3 Comments
  • Wed, Jul. 15, 11:44 AM
    • A leading Syngenta (SYT +2.9%) shareholder is criticizing the company's board for excluding all but a very small group of shareholders from talks that could determine the fate of a $45B takeover bid by Monsanto (MON -0.1%), Reuters reports.
    • Henderson Global Investors says SYT had relied on a YouTube video to communicate with other investors, a "short-sighted" strategy that likely will prove counter-productive in SYT's attempt to thwart its U.S. suitor.
    • "The most recent proposal by Monsanto is credible and deserves serious consideration," a letter from the SYT's 20th biggest shareholder reportedly says.
    | Wed, Jul. 15, 11:44 AM | Comment!
  • Tue, Jul. 14, 5:02 PM
    • John Paulson's hedge fund has taken a significant stake in Syngenta (NYSE:SYT) in a sign of support for Monsanto's (NYSE:MON) $45B takeover offer, Bloomberg reports.
    • The stake, which has not been publicly disclosed, reportedly may put Paulson & Co. among the 20 largest shareholders in SYT, but it is not clear if Paulson will go public with his stake and his support of a merger.
    • Paulson has a reputation for using his hedge fund to take large positions in companies engaged in ongoing merger discussions and voicing his support for a transaction.
    • SYT +1.7% AH.
    | Tue, Jul. 14, 5:02 PM | Comment!
  • Fri, Jul. 10, 9:50 AM
    • Monsanto (MON +1.2%) likely will refrain from making another move on Syngenta (SYT +4.1%) until after July 23 when SYT reports H1 results, Bloomberg reports, hoping for a weak quarter that would provide MON with fresh ammunition for its buyout case.
    • A strong set of numbers would help support SYT’s dismissal of the deal, which it has called simplistic and doomed to fail with regulators, but MON would look to highlight SYT’s under-performance over recent years.
    • SYT’s results likely will suffer from the challenging market affecting other seeds and crop-chemical makers.
    | Fri, Jul. 10, 9:50 AM | Comment!
  • Wed, Jun. 24, 3:49 PM
    • Monsanto (MON -5.1%) is sharply lower after issuing a cautious outlook for the next quarter, as well as 2016 and beyond, and perhaps on investor concerns about its new offer to Syngenta, which now includes a new $2B reverse break-up fee to be paid if the companies fail to obtain needed regulatory approvals.
    • "Expectations are being tempered," Edward Jones analyst Matt Arnold says, noting that MON's FQ3 earnings gain was driven by a one-time licensing payment from Scotts Miracle Gro, which sells MON's signature Roundup weed killer to consumers.
    • Monsanto continues to grapple with a downturn in the agricultural economy as farmers in tighten spending after two consecutive bumper harvests hiked global supplies and weighed on corn and soybean prices; “We expect many of these headwinds to continue into fiscal 2016," MON President Brett Begemann said in today's earnings call.
    • MON is “acknowledging that this is an agriculture bear market that is going to continue,” says Monness Crespi analyst Chris Shaw.
    • On Syngenta, CEO Hugh Grant implored investors to appeal to its board to engage in deal talks, but the window for a deal “is measured in months, not years.”
    | Wed, Jun. 24, 3:49 PM | 1 Comment
  • Wed, Jun. 3, 12:55 PM
    • BASF (OTCQX:BASFY) is considering a potential offer for Syngenta (SYT +4.4%), and is speaking to investment bankers about the possibility of an offer, according to a Reuters report.
    • SYT so far has spurned a $45B takeover offer from Monsanto (MON -0.3%), but lawyers representing the two companies reportedly have met to discuss whether regulatory obstacles can be overcome.
    | Wed, Jun. 3, 12:55 PM | 4 Comments
Company Description
Monsanto Co along with its subsidiaries provides agricultural products for farmers. Its seeds, biotechnology traits, herbicides and precision agriculture products provide farmers with solutions that improve productivity.