Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Monsanto Co. -- Ignore unavailable to you. Want to Upgrade?

To: Anthony Wong who wrote (710)	12/3/1998 11:19:00 AM
From: John F Beule	Read Replies (2) \| Respond to of 2539

Sands put a "buy" rating on MRK, with a price target of $118. Hmm. John

To: Anthony Wong who wrote (710)	12/4/1998 12:42:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 2539

Corporate Bonds: Monsanto $2.5 Bln Sale Coming as Market Gains Bloomberg News December 4, 1998, 10:35 a.m. ET New York, Dec. 4 (Bloomberg) -- Monsanto Co., is selling $2.5 billion of bonds today, while US Airways Inc. and China are gearing up for sales next week as investor demand was boosted by an employment report showing a stronger than expected economy. After a week of flagging investor demand which caused spreads to widen between corporate and Treasury bonds, Monsanto opted to increase yields 5 basis points for $2 billion of the $2.5 billion it expects to sell later today. Demand for new corporate bonds is expected to benefit by the rise in November payrolls that reduced the unemployment rate to 4.4 percent. That report ignited a rally in U.S. stocks, sent Treasury issues lower and allayed some investors' worries that economic growth would slow enough to hurt corporate credit ratings. The Dow Jones Industrial Average rose 79 points in midmorning trading. ''Any time stocks do well it's always a good sign for corporates,'' said Nicholas Walsh, who helps manage $1 billion of fixed-income assets at J&W Seligman & Co. in New York. Earlier in the week, investors were increasingly wary of corporate bonds because there were so many new issues to choose from at the same time as falling stock prices and rising Treasuries were signaling that the economy was expected to weaken. Those concerns were aggravated when Brazil failed to adopt measures that would have cut its budget deficit and allowed the company to move away from the high interest rates that are hurting its economy. ''Brazil, bad equity markets and so many deals in such a short period of time took the bloom off the rose,'' said Margaret Patel, who manages the $10 million Third Avenue High Yield Fund. About $43 billion of corporate bonds sold in November, the most for any month since July. That pace continued early this month and expected to remain brisk before the end-of-year holidays with a sales of at least $2 billion by Seagram & Co. and $500 million by China. After spreads between many corporate bonds and Treasuries widened up to 10 basis points earlier this week, Monsanto proposed to increased yields 5 basis points on $2 billion of its $2.5 billion sale. The large agricultural biotechnology company, plans to sell its notes and bonds in a private sale today at the following yield spreads over Treasuries with comparable maturities: --$500 million of three-year notes at about 90 basis points, unchanged; --$500 million of seven-year notes at about 120 basis points, wider by 5 basis points; --$500 million of 10-year notes at about 130 basis points, wider by 5 basis points; --$500 million of 20-year bonds at about 140 basis points, wider by 5 basis points; --$500 million of 30-year bonds at about 150 basis points, wider by 5 basis points; Investors say the company is required to offer wider yield spreads than similarly rated industrial bonds. They say that's needed because of the sale's large size, the retrenchment in investor demand for corporate bonds the past few days and the risks of Monsanto's recent acquisitions of seed companies and bio-technology businesses. Proceeds of the sale will help pay for $8 billion of acquisitions over the past two years. Monsanto's sale is the largest since Sprint Capital Corp. sold $5 billion Nov. 10. --Kathleen Spillane in the New York newsroom (212) 318-2034 with