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: jopawa who wrote (1446)	3/4/1999 8:26:00 AM
From: Anthony Wong	Read Replies (1) \| Respond to of 2539

Washington Post article: Monsanto, DuPont Hold Talks Sources Say Two Firms Are Not Yet Close to a Merger By Martha M. Hamilton Washington Post Staff Writer Thursday, March 4, 1999; Page E02 Monsanto Co. and DuPont Co. have held very preliminary talks about a possible combination of the two into a giant life sciences firm but they aren't close yet to a merger, sources said yesterday. Merger rumors helped boost Monsanto's stock price. Its shares rose $2.25, or 5.07 percent, to close at $46.62 1/2 in trading on the New York Stock Exchange. DuPont's stock fell $1.06 1/4 a share, or 2.07 percent, to close at $50.25, also in NYSE trading. Spokeswomen for both companies declined to comment. "We have a company policy not to comment on rumor or speculation," DuPont spokeswoman Susan Gaffney said. "This is in the rumor category." Monsanto spokeswoman Scarlett Foster said her company's policy is not to comment on any potential business deals, "true or untrue." James N. Kelleher of Argus Research Corp., an independent investment research firm, said he believes the companies would be unlikely to combine until Monsanto has shed some assets. "Monsanto has been involved in an extensive effort to rescue itself after the merger with American Home Products [Corp.] failed," he said. That $34.4 billion deal fell apart last October, at least in part because the principals in the two companies didn't share the same view of creating a future for the combined company by investing heavily in research and development. Kelleher said Monsanto had acquired four seed companies anticipating its merger with AHP, overextending itself, when it might have bought only two if it had anticipated the deal would fall through. According to a source, Monsanto and DuPont began talking almost as soon as the AHP deal cratered and have continued to talk. © Copyright 1999 The Washington Post Company washingtonpost.com