Syngenta Shares Rise on Takeover Report
13 November 2015 - 12:30PM
Dow Jones News
ZURICH—Syngenta AG shares surged Friday after a report that the
Swiss pesticides and seeds maker could be the target of a nearly
$42-billion offer from China National Chemical Corp.
Basel-based Syngenta rejected an initial offer that valued it at
449 Swiss francs per share, or 41.7 billion francs, Bloomberg
reported early Friday. Syngenta and China National Chemical both
declined to comment. Shares in Syngenta surged 7.8% in early
trading Friday in Switzerland, to 372.6 Swiss francs.
The offer was rejected due to regulatory concerns by Syngenta's
management, but the two companies haven't broken off talks,
Bloomberg reported.
Syngenta's management rejected a takeover approach by Monsanto
Co. earlier this year that was valued at roughly $46 billion.
Syngenta's management has been under pressure from some of its
shareholders after rejecting that deal. St. Louis-based Monsanto's
offer in late August had represented a 43% premium to the Swiss
company's market value at the time, and a tie-up would have created
the world's largest supplier of crop seeds and chemicals.
The Swiss company turned down the approach saying it undervalued
the company and would face opposition from regulators. The move
sparked an outcry from shareholders, which was followed by the exit
of Syngenta Chief Executive Mike Mack, who had led the company
since 2008. Mr. Mack has been replaced on an interim basis by Chief
Financial Officer John Ramsay while the company searches for a
replacement.
Syngenta has launched a $2 billion share buyback and said it
would consider selling its vegetables seeds business as parts of
moves to appease angry investors. Earlier this month, The Wall
Street Journal reported Syngenta was discussing with DuPont Co. a
potential combination with DuPont's agriculture division.
Write to John Revill at john.revill@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
November 13, 2015 06:15 ET (11:15 GMT)
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