Swiss multinational Syngenta (VTX: SYNN) reportedly believes rival Monsanto Company (NYSE:MON) could make another bid to acquire the group within a matter of days, according to website Chem.info. 

Syngenta last month rejected a Monsanto takeover offer of US$45 billion — or 449 Swiss francs per share — as officials said the bid undervalued the company and failed to account for potential other hurdles.

A statement said the offer ‘fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks, including regulatory and public scrutiny at multiple levels in many countries’.

However, Chem.info said a Bloomberg report cited sources that indicated the two companies continued to hold informal talks in subsequent weeks.

The report said Syngenta had retained financial services company UBS Group to monitor investors ahead of another anticipated offer in excess of 500 francs per share.

Monsanto allegedly long viewed Syngenta as a potential overseas takeover target, which would allow the St. Louis company to execute a corporate inversion and avoid U.S. corporate taxes, Chem.info said.

The offer earlier this year came amid lagging Syngenta stock prices, which the company attributed to currency and commodity volatility.

A merger reportedly would establish an agribusiness company with combined sales exceeding US$31 billion.

The larger offer sheet likely stems from the potential sale of Syngenta's seed business, a step that might be required to appease antitrust regulators.

After the previous bid was rejected by Syngenta, Monsanto said it still believed combining the two companies would deliver significant value to all stakeholders.

“Creating a new company from the combination of Syngenta’s strengths and leadership in crop protection chemicals and Monsanto’s leadership in seeds, traits and information technology would form an integrated global leader in agriculture with comprehensive and complementary product portfolios, and an Ag-focused organization with enhanced abilities to develop and accelerate innovative solutions for growers," Monsanto said.

“Monsanto believes the combined company would be uniquely positioned to deliver a comprehensive suite of integrated solutions to farmers around the world and to accelerate technological innovation through precision agriculture and advanced research and development capabilities aimed at increasing the world’s food supply in a sustainable fashion.”

The company said that together with financial and legal advisors it had devoted significant time and resources to analyzing the potential combination and was “confident in its ability to obtain all necessary regulatory approvals.

Photo: Syngenta

www.freshfruitportal.com