The Latest Monsanto Rumors: A Game Of Tones
July 18, 2016 When companies are engaged in the back-and-forth of the acquisition game, the tone of their various announcements is always important. Are they loudly proclaiming defiance and a desire to remain independent? Are they unsatisfied now but willing to keep talking (i.e., looking for more money)? Or are things headed for synergy heaven?
In the case of Monsanto Co., the middle option seems to be the tone of the St. Louis, MO-based agricultural giant at the moment. Since rejecting Bayer’s initial takeover offer, Monsanto has nonetheless kept talking about being acquired. In mid-July, Bayer officially upped its offer to acquire Monsanto to $54.7 billion in cash, equivalent to $125 per share for shareholders. That’s approximately $20 more than Monsanto’s stock is currently trading for on the open market, but many analysts still expect the company to reject this bid as “too low” based upon the tone of recent press releases regarding the proposed deal. Reading between the lines a bit, the tone here is “let’s make a deal . . . you’re buying.”
Loading ...And then there are the rumors that Monsanto is looking to become an acquirer rather than an acquriee. Reportedly the company is in talks with crop protection giant BASF SE about adding the German company’s product line-up to its own. Based upon the tone of these talks, this move would likely put an end to any acquisition attempt on the part of Bayer. The tone of these discussions is “let’s make a deal . . . we’re buying.”
Since these negotiations have only been happening since early May, there’s seems as if there are still plenty of rumors, press releases, company statements, and counteroffers to be made. No matter what, the game of tones is likely to continue for many months to come . . .
Subscribe Today For
