[ACCESSWIRE]
The German Chemical and Pharmaceutical Firm Raises Per Share Price from $122 a Piece to $125
LONDON, UK / ACCESSWIRE / July 15, 2016 / Active Wall St. blog coverage looks at the headline involving Monsanto Co. (NYSE: MON). Register with us now for your free membership and blog access at: http://www.activewallst.com/register/.
In its revised offer, announced on July 14, 2016, Bayer GA has raised its all-cash offer to Monsanto's shareholders from $122 to $125 per share, thus valuing Monsanto Co. at $65 billion, after its initial plans of combining operations to emerge as the world's biggest supplier of farm chemicals and seeds fell through. Monsanto had rejected its earlier proposal made in May 2016 as too low. The St. Louis-based Monsanto had also said that Bayer's earlier proposal did not address potential financing and regulatory risks.
Today, AWS is promoting its blog coverage on MON, also touching on the following stocks: DOW, DD, and SYT. Get all of our free blog coverage and more by clicking on the links below:
http://www.activewallst.com/registration-3/?symbol=MON
http://www.activewallst.com/registration-3/?symbol=DOW
Bayer offers antitrust break fee
According to Germany-based Bayer's statement, the company has also offered to pay a reverse breakup fee of $1.5 billion if the deal does not see the light of the day on antitrust concerns. Bayer stated, "it believes that its offer fully captures the intrinsic value of Monsanto," adding that the new bid represents a 40% premium to Monsanto's share price in early May 2016, before the possibility of an acquisition first surfaced.
Consolidation in Offing
After a dip in crop prices, if the merger goes through, it could end up being the largest takeover bid in the $100 billion global market for agricultural seeds and pesticides. The coming together of both firms would result in an agricultural one-stop shop with annual sales of up to $67 billion. After rejecting Bayer's bid, Monsanto held talks with another German chemical maker, BASF. A merger between Bayer and Monsanto would leave BASF as a solo representative in the industry.
Bayer's proposal is the latest in a succession of multibillion-dollar mergers in the agriculture seed and pesticide industry. The Dow Chemical Co. (NYSE: DOW) and E. I. Du Pont De Nemours and Co. (NYSE: DD) announced to merge for $130 billion. The merger, which is awaiting regulatory approval, was announced in December 2015.
In February 2016, in what would be the largest foreign acquisition by a Chinese company, Government-owned China National Chemical Corp. acquired Swiss pesticide and seed company Syngenta AG (NYSE: SYT) for $43 billion.
Price concern for farmers
Both companies run on distinct side of the agricultural fulcrum and the merger could result in additional pricing pressure on farmers. Bayer's investors traded cautiously towards a possible deal and a large share sale that would help pay for it, with the German company's stock falling when it was originally unveiled. That likely limits how much Bayer can ultimately offer to pay.
Stock Performance
The market still remains skeptical, as shares of Monsanto closed 3.06% higher at $104.22, which is 6.6% below the new price quoted. Bayer's shares closed up 0.6% to 93.44 euros before the new offer was publicly confirmed.
Active Wall Street:
Active Wall Street (AWS) produces regular sponsored and non-sponsored reports, articles, stock market blogs, and popular investment newsletters covering equities listed on NYSE and NASDAQ and micro-cap stocks. AWS has two distinct and independent departments. One department produces non-sponsored analyst certified content generally in the form of press releases, articles and reports covering equities listed on NYSE and NASDAQ and the other produces sponsored content (in most cases not reviewed by a registered analyst), which typically consists of compensated investment newsletters, articles and reports covering listed stocks and micro-caps. Such sponsored content is outside the scope of procedures detailed below.
AWS has not been compensated; directly or indirectly; for producing or publishing this document.
PRESS RELEASE PROCEDURES:
The non-sponsored content contained herein has been prepared by a writer (the "Author") and is fact checked and reviewed by a third party research service company (the "Reviewer") represented by a credentialed financial analyst [for further information on analyst credentials, please email info@activewallst.com. Rohit Tuli, a CFA® charterholder (the "Sponsor"), provides necessary guidance in preparing the document templates. The Reviewer has reviewed and revised the content, as necessary, based on publicly available information which is believed to be reliable. Content is researched, written and reviewed on a reasonable-effort basis. The Reviewer has not performed any independent investigations or forensic audits to validate the information herein. The Reviewer has only independently reviewed the information provided by the Author according to the procedures outlined by AWS. AWS is not entitled to veto or interfere in the application of such procedures by the third-party research service company to the articles, documents or reports, as the case may be. Unless otherwise noted, any content outside of this document has no association with the Author or the Reviewer in any way.
NO WARRANTY
AWS, the Author, and the Reviewer are not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted whatsoever for any direct, indirect or consequential loss arising from the use of this document. AWS, the Author, and the Reviewer expressly disclaim any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Additionally, AWS, the Author, and the Reviewer do not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.
NOT AN OFFERING
This document is not intended as an offering, recommendation, or a solicitation of an offer to buy or sell the securities mentioned or discussed, and is to be used for informational purposes only. Please read all associated disclosures and disclaimers in full before investing. Neither AWS nor any party affiliated with us is a registered investment adviser or broker-dealer with any agency or in any jurisdiction whatsoever. To download our report(s), read our disclosures, or for more information, visit http://www.activewallst.com/disclaimer/.
CONTACT
For any questions, inquiries, or comments reach out to us directly. If you're a company we are covering and wish to no longer feature on our coverage list contact us via email and/or phone between 09:30 EDT to 16:00 EDT from Monday to Friday at:
Email: info@activewallst.com
Phone number: 1-858-257-3144
Office Address: 3rd floor, 207 Regent Street, London, W1B 3HH, United Kingdom
CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.
SOURCE: Active Wall Street