Tuesday, May 24, 2016

Agribusiness – Monsanto wants more money – Süddeutsche.de

  • The US agricultural company Monsanto rejects takeover offer from Bayer from.
  • The Americans apparently want to drive the price up.
  • The share prices of both companies responded to the messages.
From Varinia Bernau Herbert Fromme , Munich, and Claus Hulverscheidt , New York

the controversial US seed producer Monsanto has initially rejected the takeover offer made by Bayer Group over 62 billion dollars. but apparently the Americans have no fundamental reservations, but engaged drive the price up. “Our company is rated far too low by the offer”, also a number of regulatory and financial issues was open, said Monsanto CEO Hugh Grant. However, it was ready for further talks with Bayer. The Leverkusen-based chemicals group has been $ 122 per Monsanto shares.

He initially did not comment. Bayer CEO Werner Baumann had on Monday in an interview with reporters do not want to specify whether he would, if necessary, by considering taking against the resistance of the Monsanto management. The goal is an agreement by mutual agreement, he stressed. Baumann concluded a hostile takeover bid but expressly not made. “We will do everything to realize this acquisition,” he said

The major shareholders of Bayer want so far failed to comment on the purchase plans -. Probably because names like Capital Group, Vanguard Group, BlackRock and Sun Life Financial, see the owner lists equal to both companies concerned. According to the news agency Bloomberg BlackRock is the largest Bayer Stockholders with a share of 6.34 percent. The list with Monsanto leading the Capital Group with more than nine percent.

Bayer managers are personally traveled to investors

The According to agency report to leading Bayer managers in recent days to London have Frankfurt and in the United States have traveled and picked up the phone to convince important major investors of the offer. “They meet with investors to explain details of the trade credible,” said Andrea Williams, a specialist in European equities at asset manager Royal London Asset Management, which is also one of the Bayer stockholders.

Among the concerns investors heard that Bayer would finance the purchase primarily through loans. however, the Group stressed that he had proved in the past that it can reduce debt quickly. In addition, you’ll take with Monsanto, a company that dispose about high liquidity. Also, the help, quickly reduce the debt again. Analysts say this argument indeed for conclusive. “But the debt would now be much larger – and it will take some time until the group back room for another has,” said Ulle Woerner of Landesbank Baden-Württemberg. His warning would gain weight, Monsanto should now knock out an even higher price. Ulrich Huwald by the analysts at Warburg already sees the risk of a costly bidding war with other interested parties, such as BASF.

shares rose

The share prices of Bayer and Monsanto responded on Tuesday immediately on the releases from the USA. Bayer papers, which had increased during the day, gave off a portion of its gains but still closed 3.6 percent in positive territory. The shares of Monsanto to put. Bayer CEO Baumann had the weakness of the past days used to to buy privately Bayer shares. Previously he was for almost one million euros. Other Bayer managers bought.

The Greens have called on Tuesday the European Commission, the Federal Government and the Federal Cartel Office to prevent the acquisition of Monsanto by Bayer. “A market power concentration of such magnitude is an existential threat to the already limited competition structures in the European agricultural market,” it says in a letter to the European Parliament members Martin Häusling and Sven Giegold to EU Competition Commissioner Margrethe Vestager, Federal Minister Sigmar Gabriel and Bundeskartellamt President Andreas Mundt. Currently, 95 percent of the European vegetable seed sector would controlled by five large companies, the Green politician.

“By purchasing Monsanto by Bayer AG, it would be only four.” The consequences would be a restricted seeds and varieties, a growing dependence on few suppliers and rising prices. “In order to grow Europe’s political responsibility for the steady decline in the genetic diversity in agricultural culture and nature”, declared Häusling and Giegold.


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