Monsanto reportedly sweetens Syngenta bid

Bid and regulatory break fee increased after two previous bids were rejected.

August 25, 2015

1 Min Read
Monsanto reportedly sweetens Syngenta bid

Two Monsanto bids were already rejected by Syngenta this year, but Monsanto continues to make its intentions clear after Bloomberg reported Monday that the company has, once again, offered a larger bid.

According to the report, the recent bid for Syngenta has increased from 449 Swiss francs ($45 billion) per share to about 470 francs ($47 billion) per share in cash and stock. Additionally, the newest offer also increases the reverse break-up fee from $2 billion to $3 billion if the transaction is challenged.

Sources for Bloomberg said the proposal also contains a higher proportion of cash than the prior bid, which proposed a split of 45% cash to 55% Monsanto shares.

Bloomberg reported some analysts expected Syngenta would reject the latest offer since the company believes it is worth around 650 francs a share ($62 billion).

After the last offer, Michel Demare, Syngenta chairman, said the proposal undervalued “the outstanding growth prospects of Syngenta's integrated strategy and the significant future value potential of the company's crop-focused innovation and market leading positions.”

But, lower profits in Syngenta’s recently released 2015 half year financial report could impact the consideration of Monsanto’s latest offer, analysts suggested. Syngenta also announced Aug. 19 the divestment of its Flowers seed business.

Syngenta’s board was expected to meet as early as Tuesday to make a determination.

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