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

To: Epicenter who wrote (1079)	2/3/1999 9:45:00 PM
From: Anthony Wong	Respond to of 2539

Epicenter, my post at the PFE thread: techstocks.com I haven't seen anything so far concerning the status of their filing for approval in Japan. Anthony

To: Epicenter who wrote (1079)	2/4/1999 1:02:00 PM
From: Anthony Wong	Read Replies (1) \| Respond to of 2539

Pioneer Hi-Bred Sues Monsanto for Misappropriation of Seed Corn Bloomberg News February 4, 1999, 12:05 p.m. ET Pioneer Hi-Bred Sues Monsanto for Misappropriation of Seed Corn Des Moines, Iowa, Feb. 4 (Bloomberg) -- Pioneer Hi-Bred International Inc., the world's biggest seed company, sued Monsanto Co., claiming it acquired misappropriated Pioneer seed- corn when it purchased Cargill Inc.'s international seed unit. The suit, filed in the U.S. District Court for the Southern District of Iowa Central Division, charges Monsanto with misappropriating trade secrets. It claims Monsanto should have known, when it acquired the Cargill unit last June, that some of its seed derived from Pioneer-bred parent lines. Monsanto said it hasn't yet seen the suit but denied it's done anything wrong. It said if it acquired misappropriated genetic material it did so unknowingly. ''We've been in contact with Pioneer and Cargill and expect to resolve this situation,'' said Scarlett Foster, a Monsanto spokeswoman. ''However this lawsuit is utterly without merit.'' Cargill, the world's biggest grain company, said earlier this week it had found ''problem areas'' in its seed breeding program. Cargill said Pioneer breeding material was introduced without its knowledge by a former Pioneer employee. Minneapolis-based Cargill is still investigating how many of its hundred-plus commercial hybrids were affected. So far it has pulled just one from the market and says it doesn't think there will be any more. Pioneer claims at least 14 hybrids are affected. Des Moines, Iowa-based Pioneer argues that when St. Louis- based Monsanto acquired the Cargill unit, it should have discovered, as part of its due diligence, that some of the hybrids contained misappropriated material. ''If due diligence does not turn up this type of activity and you acquire a company, you acquire all its rights and all its obligations,'' said Carrol Bolen, Pioneer's director of legal affairs. ''Now they own a company that has this problem and we shouldn't be penalized for that.'' Series of Lawsuits The suit is the latest in a series Pioneer has filed against competitors to protect its intellectual property. In November it sued DeKalb Genetics Corp., a corn seed company now owned by Monsanto, claiming DeKalb bought Pioneer's seed legitimately but then unlawfully used it to create new hybrids. It sued Asgrow Seed Co., also owned by Monsanto, for the same reason. Monsanto argues it is not illegal for companies to breed new hybrids from legitimately purchased seed. ''The focus of the litigation is whether the practice of breeding from lawfully acquired material can be barred, even though it is expressly authorized under the Plant Protection Act,'' said Monsanto's Foster. Yesterday Pioneer sued the employee who allegedly gave its genetics to Cargill. The employee, Thomas William Ishler, was a corn breeder with Pioneer from 1965 to 1989. He worked for Cargill until 1996. Now he works for a small unidentified breeding seed company, Pioneer said. Monsanto shares fell 3/4 to 48 5/8 at midday. Pioneer Hi Bred shares 3/16 to 27 1/16. --Toni Clarke in the Chicago newsroom (312) 692-3725 /mfr