In a letter to two members of the European Parliament post on the Green Party’s website, Vestager wrote: “In our investigation, we will take into account your concerns about the effects of the Bayer-Monsanto merger on prices, the variety of available seed products as well as research and innovation”.
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Analysts, on average, projected $2.40 in adjusted earnings per share and $4.49 billion in sales, according to Thomson Reuters.
Monsanto expects full-year earnings in the range of $4.40 to $5.10 per share.
Monsanto also said on Wednesday there was “no formal update on the Bayer proposal”, but it had been in talks with Bayer’s management and others over the last several weeks regarding “alternative strategic options”.
Speaking later on a conference call he avoided any further clarification, stating that the talks were private, leaving investors to guess at the possible alternatives. Up to Tuesday’s close, the stock had risen about 12 percent since Bayer’s takeover bid was first reported on May 12. In April, the company projected its fiscal 2016 as-reported earnings guidance to be in a range of $3.72 to $4.48 per share. Profit excluding one-time items was $2.17 a share.
The company said its third-quarter EPS performance was negatively affected year-over-year by the absence of the Scott’s licensing agreement, glyphosate pricing declines, Roundup Ready 2 Xtend launch delay costs and lower soybean volume due to the delay, and India cotton pricing regulations.
Chief Executive Officer Hugh Grant said on a conference call that Monsanto is still committed to its strategy of becoming an integrated, one-stop shop for farm chemicals and seeds.
The seed and agriculture chemical industry has seen several deals in the past year as low crop prices and belt-tightening by farmers put pressure on earnings. Instead, it would pursue smaller joint venture and partnership deals, he said at the time.
On a per-share basis, the St. Louis-based company said it had net income of $1.63.
The deals have sparked worries among farmers who fear that consolidation will lead to higher prices for seeds.
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