Anthony, From breifing.com.
E.I. DUPONT DE NEMOURS (DD) 57 11/16 +4 1/8. Now that this global science and technology-based company has announced that it plans to "aggressively and rapidly build its life sciences portfolio," what does this mean for Monsanto Co. (MTC 46 7/8 +7/8)? While the two companies have shared discussions in the recent past about combining their respective life sciences operations, the merger and acquisition route appears not to be the preferred path that DuPont would like to follow. Instead, the company is seeking alliances with strategic partners which may prove to be to the liking of Monsanto since, in the past, deals have collapsed because MTC's Robert Shapiro has wanted more control over the course of the life sciences group. In fact, in the latest discussions that were reported last week by the New York Times, control seemed to a major stumbling block that would prevent these two companies from tying the knot, particularly given the valuation that was being placed on the deal. For the type of money that DuPont would pay for Monsanto in a buyout, in excess of $30 billion, it better have the rights to call the shots. But the driving factor to make a deal may be changing at this time which may work to the advantage of both companies and allow for a partnership to be formed, particularly now that DuPont is also keen on creating a "tracking" stock for its life sciences businesses. The recent success that Monsanto has enjoyed with its rheumatoid and arthritis Celebra drug could be an appealing factor for DuPont and one that would help get its tracking stock off on the right path.
Regards,
Bob |
