Monsanto, American Home Merger on Track, Person Familiar Says
Bloomberg News
October 2, 1998, 5:13 p.m. ET
Monsanto, American Home Merger on Track, Person Familiar Says
St. Louis, Oct. 2 (Bloomberg) -- The proposed $35 billion
merger between Monsanto Co., one of the world's leading
agricultural companies, and American Home Products Corp., a
leading drug company, is still on track, a person familiar with
Monsanto's negotiators said.
St. Louis-based Monsanto's shares fell 2 1/8 to 52 in
trading of 9.9 million shares, more than four times the recent
daily average, after earlier falling as low as 46 3/6 amid
speculation the merger would be delayed or called off. AHP shares
fell 1/4 to 50 3/4.
Speculation had been building through the week as investors
became concerned that the companies were taking an unusually long
time to release their merger proxy document. It was fueled by an
unconfirmed report in a Washington-based newsletter claiming the
merger could require Monsanto to shed a large number of assets.
''The nervous nellies fell into the bear trap,'' said David
Saks, an analyst at Gruntal & Co., who has a ''strong buy''
recommendation on AHP. ''By the end of the day, the merger will
still be on.''
Monsanto had intended to hold a meeting for its shareholders
about the merger ''no later than October 1, 1998,'' according to
a filing with the Securities and Exchange Commission.
--Toni Clarke in the Chicago newsroom (312) 692-3725 with |
