The increased offer, which sent the shares soaring of Syngenta, is geared toward stopping the stalemate involving both companies. The St Louis-based firm’s new supply isn’t essentially remaining and will change if Syngenta agrees to enter negotiations and open its books for due diligence, the individual stated.
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The sweetened offer primarily increases the cash portion of the original cash and stock proposal, Bloomberg reported.
US agribusiness Monsanto has sweetened its offer to acquire Swiss agrochemicals firm Syngenta, valuing the latter at around $47bn (£29.9bn, €40.9bn).
Berenberg, which rates Syngenta at “sell” with a CHF250 price target, said it would not be surprised if the CHF470 offer was confirmed.
The breakup fee had previously been a point of contention among Syngenta officials, who had called Monsanto’s previous takeover attempts ” inadequate on so many perspectives”. The average acceptable offer price among the investors was 473 Swiss francs, according to the report.
A representative for Syngenta, the world’s largest maker of farming pesticides, told Reuters on Monday, “There is no comment to make”.
The company has been one of the strongest proponents of genetically modified organisms, which are mostly banned in the European Union because of what activists say are uncertain environmental and health effects. That would translate to a market capitalization of about 43.7 billion francs or $47 billion. In after hours, the stock further dropped $0.25 or 0.27%.
However, the company’s board unanimously made a decision to reject the offer, which “fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks”.
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“What element of no do not they understand?”
