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US: Syngenta defends against Monsanto bid

By  |  May 31, 2015

Syngenta, the agrochemical maker that rejected an unsolicited $45 billion takeover offer from Monsanto is building up defenses as it prepares for a possible higher bid from its U.S. rival, according to Bloomberg.

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    The Swiss maker of Polo and Force insecticides has added UBS Group to its stable of advisers to speak with investors and monitor changes in shareholdings, said the people, who asked not to be identified because the information is private. Syngenta expects that Monsanto could return as soon as next week with a bid that tops the unsuccessful 449 franc-a-share offer, they said.

    Monsanto has to weigh whether it makes financial sense to up its offer amid volatile agricultural cycles that affect crop prices and demand for Syngenta’s range of cropcare chemicals. Syngenta, which snubbed Monsanto’s proposal because it deemed the offer too low and the execution risk too high, may be willing to consider an offer of 500 francs a share or more, said one of the people.

    Syngenta’s seeds business generated revenue last year of $3 billion or 21 percent of total sales. Selling the seeds unit plus some herbicide businesses could generate $8 billion, according to a note from Deutsche Bank.

    Full content: Bloomberg

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