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Biotech / Medical : Pharma News Only (pfe,mrk,wla, sgp, ahp, bmy, lly) -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (851)	10/2/1998 4:44:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 1722

Monsanto dives, recovers on merger rumors Friday October 2, 4:23 pm Eastern Time (Note: this article is ''in progress''; there will likely be an update soon.) CHICAGO, Oct 2 (Reuters) - Shares in Monsanto Co. plunged briefly late Friday, then bounced back, on rumors of problems with the company's proposed merger with drug giant American Home Products Corp. (NYSE:AHP - news). Shares in Monsanto were off 5-1/16 at 49-3/16 in heavy trading volume on the New York Stock Exchange just a half-hour from the closing bell. The shares earlier had fallen as low as 46-1/4. ''There were rumors going around that the deal was busted up,'' said an industry analyst who asked not to be named. An arbitrageur close to the transaction, who also asked not to be named, said, ''Monsanto stock was slaughtered on the rumor. Now it appears to be coming back.'' A Monsanto spokeswoman declined to comment. American Home could not be reached. After the rumor subsided, buyers crowded back into Monsanto so quickly that the stock was halted on an imbalance. ''It was halted because there were too many buyers, not for a news announcement,'' the arbitrageur said. American Home and St. Louis-based Monsanto agreed in June to a $33 billion stock deal forming a global powerhouse of drugs, genetically engineered crops and consumer goods. Shares in American Home, of Madison, N.J., were off 2-1/16 at 48-7/8, also on the NYSE, in heavy trading. The European Commission granted antitrust clearance to the transaction on Monday, moving it closer to completion. (Note: this article is ''in progress''; there will likely be an update soon.)