May 14, 2015
Monsanto''s ''takeover game'' with Syngenta seen to continue
Did you think the "takeover game" between Swiss farm chemicals giant Syngenta and its US rival Monsanto had ended with the former''s rejection of the latter''s offer last week?
For market analyst Markus Mayer of Baader Helvea, it was "just the beginning." Helvea and other analysts including Vontobel''s Patrick Rafaisz said Monsantocould possibly increase its offer to 500 Swiss francs (US$548.5) per share from the rejected 449 francs (US$492), according to the Associated Press.
The chances of a higher bid from Monsanto even sent Syngenta shares soaring by 2.34% to 406.20 francs last Monday morning in Zurich on top of a 19.3% climb Friday after Syngenta declined the bid.
Syngenta had said the 449-franc offer with about 45% in cash was undervalued and that it did not "reflect the outstanding growth prospects" of the company.
It said the offer "fundamentally undervalues Syngenta''s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries".
Syngenta chairman Michel Demare said the company''s "business outlook is strong, with emerging markets accounting for over 50 percent of our sales."
Monsanto first made a failed acquisition attempt in June last year.
The known market value of Syngenta, which was formed in 2000 by the merger of Novartis Agribusiness and Zeneca Agrochemicals, is $31 billion.
Merging with Syngenta merger would make Monsanto, which is worth $54 billion, the biggest seeds and crop chemicals company in the world.