Hoechst, Schering Venture Agrevo Drops Plan to Buy Cargill's Seed Unit
Bloomberg News
February 4, 1999, 1:06 p.m. PT
AgrEvo Drops Plan to Buy Cargill Unit, Citing Pioneer Lawsuit
Frankfurt, Feb. 4 (Bloomberg) -- AgrEvo GmbH, an
agricultural biotechnology venture between German drugs and
chemicals makers Hoechst AG and Schering AG, said it dropped
plans to buy Cargill Inc.'s North American seed business because
of a lawsuit filed by a rival seed maker.
AgrEvo offered on Nov. 11 to buy Cargill's seeds business
for as little as $350 million -- down from the $650 million the
companies agreed in September.
Pioneer Hi-Bred International Inc., the world's largest
seed company, filed a suit alleging Cargill's seed business used
some Pioneer proprietary seeds to develop its own variants of
the crops. AgrEvo is battling with rivals Monsanto Co., DuPont
Co., Novartis AG and Dow Chemical Co. to acquire the technology
and distribution networks they need to develop and sell corn,
soybean and other seeds with improved growing or nutritional
characteristics.
''For the moment, its over,'' said AvrEvo Spokesman
Wolfgang Faust. ''There's a slight possibility we might resume
talks if the lawsuit is settled.''
--Phyllis Carter in Frankfurt (49) 69 92041 200/ab
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