Yesterday, 10:58 AM
- German chemicals group BASF (OTCQX:BASFY) has lined up a loan package from large multinational banks for a potential takeover offer for Syngenta (NYSE:SYT), which has rejected a $45B takeover offer from Monsanto (NYSE:MON), Reuters reports.
- BASF would wait for MON to make a bid before making its own move for SYT, and it would be comfortable with no merger at all and the industry status quo prevailing, the report says.
- "BASF will not be a first mover but remain a reactive player," according to one source.
Mon, Jul. 27, 5:22 PM
- Syngenta (NYSE:SYT) says a $2B breakup fee that suitor Monsanto (NYSE:MON) has pledged to pay if its proposed $45B merger fails would apply only in limited cases, leaving its shareholders exposed to the bulk of regulatory risks.
- SYT tells Reuters that based on its legal interpretation of MON's proposal, the payment would be triggered only if horizontal antitrust concerns were to trip up the deal, an interpretation MON has rejected.
- Bernstein analyst Jeremy Redenius says that if the interpretation is accurate, it would amount to a "huge omission" in the guarantees offered to SYT shareholders.
Thu, Jul. 23, 5:21 AM
- Monsanto (NYSE:MON) renewed its efforts to woo Syngenta (NYSE:SYT) today over its buyout proposal after the Swiss agrochemicals maker reported Q2 results.
- "Syngenta's earnings announcement confirms it still does not have a long-term vision or plan that would create the same value as Monsanto's very attractive 449 Swiss franc per share ($45B total) proposal," Monsanto Chairman Hugh Grant declared.
- Syngenta's CEO is not buying it. "We took a serious look at this thing" and found that the attempted takeover offer to be "woefully short," said Michael Mack.
- Previously: Syngenta's upcoming earnings in spotlight as Monsanto courts investors (Jul. 10 2015)
Mon, Jul. 20, 10:59 AM
- Syngenta (SYT -0.2%) plans a series of meetings with investors in Europe and the U.S. as it contends with frustration from some shareholders over its rejection of Monsanto's (MON -0.2%) $45B takeover effort, WSJ reports.
- Some SYT shareholders are said to be voicing discontent over the company’s steadfast refusal over the past three months to enter negotiations with MON and over communications with its own shareholders.
- According to the report, a top five SYT shareholder expressed frustration in private talks with management that it did not discuss MON’s approach with investors first before refusing it; another shareholder, Henderson Global Investors, reportedly told SYT that the takeover proposal is “credible and deserves serious consideration."
Fri, Jul. 17, 7:55 AM
- Any hostile bid by Monsanto (NYSE:MON) for Syngenta (NYSE:SYT) is "not a very compelling idea" and is some way off, MON President and COO Brett Begemann tells Reuters, adding that he is focused on trying to secure a negotiated deal.
- MON is keen to know more about SYT's research capabilities, product liability exposure and the quality of its reported sales, Begemann says; SYT has rejected a $45B bid proposal from MON and refused to open its books.
- If a merger is derailed, MON will try to seek out other acquisitions, or establish a series of partnerships or licensing agreements, to help expand its portfolio of herbicides and agricultural chemicals, Begemann says.
- He declines to say which companies MON might approach either for acquisition or licensing talks, but Bayer CropScience and BASF have been speculated as potential partners.
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.
Tue, Jul. 14, 6:38 PM
- Monsanto (NYSE:MON) says it has arranged for an outside scientific review of a World Health Organization finding that its Roundup weed killer's key ingredient probably causes cancer.
- MON says the process and the findings will be independent and transparent, but it also will be involved in providing information and data for the review.
- The WHO's International Agency for Research on Cancer said in March it had concluded that the ingredient - glyphosate - probably was carcinogenic.
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.
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.
Tue, Jul. 7, 3:30 AM
- Monsanto (NYSE:MON) Chief Executive Hugh Grant had held "very constructive" talks with Syngenta (NYSE:SYT) shareholders and could raise the company's $45B offer for the Swiss group under certain conditions.
- "If Syngenta commits to opening its books and detailing why it thinks it is worth more, we would reconsider our offer," Grant said in an interview to Le Temps.
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, 8:55 AM
- Monsanto (NYSE:MON) +0.2% premarket after reporting FQ3 earnings that easily beat estimates and sales that rose 8% Y/Y to nearly $4.6B, but it also expects FQ4 earnings to break even while analyst consensus had forecast EPS of ~$0.33.
- MON reaffirms guidance for the full year, expecting EPS at the low end of $5.75-$6.00 vs. $5.77 analyst consensus; gross profit growth percentage in the Seeds and Genomics segment is now seen flat Y/Y, while Ag Productivity gross profit is now seen down only slightly due to the agreement with Scotts Miracle Gro as an offset to the anticipated 15%-17% decline in gross profit from continued softening of generic glyphosate pricing and currency headwinds.
- For the current quarter, corn seed and traits sales of $1.52B were slightly below expectations, while ag productivity sales of $1.39B slightly beat consensus.
- MON says it plans to spend more than $1B over the next three to five years for production of dicamba weedkiller at its plant in Luling, La.; it expects to begin selling crop seeds genetically engineered to tolerate both Roundup and dicamba next year to help farmers control weeds no longer killed by Roundup alone.
Wed, Jun. 24, 8:02 AM
Wed, Jun. 24, 7:03 AM
Tue, Jun. 23, 5:30 PM
Tue, Jun. 23, 3:15 PM
- Dow Chemical's (NYSE:DOW) widely used 2,4-D weedkiller is added to a World Health Organization list of potential carcinogens, just three months after the agency made a controversial assessment of Monsanto’s (NYSE:MON) glyphosate herbicide.
- 2,4-D - used for 70 years to control weeds in wheat, corn and soybean fields as well as gardens and lawns - is “possibly carcinogenic to humans," according to a report from the WHO's International Agency for Research on Cancer.
- Dow strongly objects, saying the IARC’s classification is inconsistent with government findings in nearly 100 countries that have found 2,4-D is safe to use as directed.
- The IARC says 2,4-D is less of a cancer hazard than glyphosate, but that if finds strong epidemiological evidence that the weedkiller induces oxidative stress and moderate evidence that it suppresses the immune system.
MON vs. ETF Alternatives
Monsanto Co is a provider of agricultural products for farmers. The Company offers corn, soybean, cotton, wheat, canola, sorghum and sugar cane seeds. Its segments are Seeds and Genomics and Agricultural Productivity.
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