Monsanto open to deal

Article Excerpt

MONSANTO CO. $112 (New York symbol MON, Aggressive Growth Portfolio; Manufacturing & Industry sector; Shares outstanding: 436.8 million; Market cap: $48.9 billion; Price-tosales ratio: 3.5; Dividend yield: 1.9%; TSINetwork Rating: Above Average; www.monsanto.com) develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also sells weed- and pest-control products. The company is now the target of a $122.00-a-share, all-cash takeover bid by Bayer AG— the German farm chemical and drugmaker. Bayer feels the merger would help both firms compete with rivals Dow Chemical Co. and DuPont Co., which plan to merge later this year. As well, China National Chemical Corp. agreed in February 2016 to acquire Switzerland- based Syngenta AG. Monsanto has rejected Bayer’s offer as too low. But it’s willing to negotiate a better price. Even so, a merger would face tall regulatory hurdles. That’s because the combined company’s higher market share would likely push up the cost of seeds…