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Politics : Ask Michael Burke

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To: geewiz who wrote (28710)6/1/1998 11:49:00 AM
From: Exacctnt   of 132070
 
Art, Thanks. There's going to be more deals in the Life Science concept in the coming months. DuPont, if it is seriously going to increase its percentage of its business to 50% Life Sciences, will buy presence in the drug and ag industries. They will not have the cost side under control in drugs because they currently don't have the sales and marketing channels. To keep up with Monsanto (AHP) and Novartis in ag, they need more than the 20% stake with Pioneer Hi-Bred.

How do you make money in this sector is the question. I'm a little disappointed that there isn't much of a premium in Monsanto's price. This is the second merger/aquisition in the past week that I have owned stocks that have been acquired/mergered with no premium. Perhaps this is evidence that market prices are too high and to get around having to pay premium prices to make acquisitions, companies are offering stock in lieu of cash.

Regards,
Bob
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