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   Strategies & Market TrendsSpeculating in Takeover Targets


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To: richardred who wrote (3774)5/6/2015 9:40:20 AM
From: richardred
   of 7058
 
Monsanto Could Take Over Syngenta Despite Antitrust Hurdles, Reports Say



Monsanto might take over Syngenta in a move that would make Monsanto the world’s largest player in both seeds and agricultural chemicals, according to a Bloomberg report. After Bloomberg broke the news that Syngenta could merge with Monsanto, Syngenta rose about 15 percent and Monsanto rose nearly three percent to start off the new month. At that point, Monsanto’s market value was placed at $55.8 billion. Though it might seem like Monsanto, already considered an “Ag Giant” by most of the world, might face fierce opposition in antitrust laws, Deutsche Bank analyst Virginie Boucher-Ferte said the antitrust hurdles would not be “insurmountable,” according to Seeking Alpha.

“Although MON is global #1 in seeds and Syngenta #3, Syngenta’s mkt share is relatively small at c8% vs. c25% for MON. Even if there would undoubtedly be some antitrust issues in some countries/regions for some crops (seeds is a regional market), we note Syngenta’s seeds business is currently perceived as the weak spot‚ ‘stained’ by recent problems in its US corn business. Therefore, if some of Syngenta’s seeds assets had to be divested as a pre requisite for a deal, we don’t think the market would see it as a problem.”

Boucher-Ferte said that it would make sense in the long-term perspective for Monsanto to acquire Syngenta, especially considering that Monsanto’s star herbicide formulations of glyphosate are demonstrating problems as nuisance weeds adapt to resist the chemical, according to Street Insider. Syngenta’s market value is about $35 billion. In order to address antitrust laws, Monsanto allegedly planned to sell parts of the merged corporations to other large corporations, including Bayer, though a Bayer spokesperson said that that was just speculation, the Bloomberg report stated.

Monsanto has risen above antitrust accusations before. In 2012, the U.S. Department of Justice dropped its investigation into alleged practices that would eliminate competition. That same year, multiple states led by the State of Iowa closed a five-year probe into the company to see if it violated antitrust laws, and no action was taken against Monsanto at that time, according to Reuters.

Public opinions on the companies have been less than ideal in recent years. In the later half of 2014, Syngenta was the target of a multi-state lawsuit by farmers who alleged that they suffered significant financial losses after the GMO seed giant sold genetically engineered corn seeds to the farmers before being approved for import by the Chinese government, an earlier Inquisitr report indicated. Monsanto was hit with more bad press after a report by the World Health Organization (WHO) International Agency for Research on Cancer (IARC) published findings in The Lancet Oncology that suggested its glyphosate-based herbicide is “probably cancerous to humans,” Inquisitr reported earlier this year.

According to the St. Louis Post Dispatch, Syngenta has suffered from lower than hoped for earnings, and Monsanto might be looking at the merger as a great opportunity to make a profit from Syngenta’s new products like the fungicide Elatus, which is for use on soybeans, peanuts, and potatoes. Still, talks of a merger between the two companies has come up before and fizzled out.

Strengthening the company in the long-term was a vision Monsanto’s CEO Hugh Grant extended to investors as Monsanto executives discussed disappointing fourth quarter earnings at a teleconference about the future of the company’s finances last year. If Monsanto takes over Syngenta and sells off parts of both companies to other major players, Grant’s vision of long-term prosperity for the company that has made over its image multiple times in the past may come to fruition. Still, one question keeps popping up in the newsfeeds after Bloomberg‘s announcement. Now that big name corporations like Syngenta and Monsanto are recognized by consumers across the nation, and people in states like Vermont and Oregon are standing up against them, could a takeover actually pass through antitrust laws in today’s climate of public scrutiny?

inquisitr.com

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To: richardred who wrote (3918)5/7/2015 1:51:48 PM
From: richardred
   of 7058
 
RE-TDC The company missed on earnings this time. Nerveless like clockwork the stock is down about 3 and change so far on the release. A wait and see if the stock recovers quickly (2-3 weeks) to continue the pattern.

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To: richardred who wrote (3499)5/12/2015 9:50:28 AM
From: richardred
   of 7058
 
Looks like Danaher is going after Pall today for 120.. a share. Danaher was my fits like a glove for my BRKS speculation. Beckmen and BRKS are competitors.
Message 29133249

Danaher $8 Billion Seen Fueling Bids for Pall, Spectris.
bloomberg.com

Snip as it relates to BRKS> Danaher also could pursue transactions in the life sciences and diagnostics industry, which last year accounted for 36 percent of its revenue, according to Brandon Couillard, a New York-based analyst at Jefferies Group LLC.

>The company’s market value has surged more than four-fold in the last decade as it completed about 68 takeovers. While Danaher has already announced five deals this year, it hasn’t spent more than $1 billion on a transaction since the purchase of Beckman Coulter Inc. for about $7 billion in 2011, data compiled by Bloomberg show. “This is a company that again and again has shown that via M&A it can create a ton of value,” Ross Muken, a New York-based analyst at International Strategy & Investment Group LLC, said in a phone interview. Danaher is “overdue” for a transaction.

Analysts estimate the company will boost sales 3.8 percent this year to $19 billion, the slowest growth since 2009.

Cash Advantage Danaher had a record $2.3 billion in cash as of June, according to data compiled by Bloomberg that goes back to 1987.

“The great advantage that Danaher has is that balance sheet, and so people would like them to put it to use,” Jonathan Groberg, a New York-based analyst at Macquarie, said in a phone interview. Without deals, “you’re left with a low-growth business.”

Danaher has the capability to do more than $8 billion in deals through 2014, Culp said on the company’s second-quarter earnings call in July.

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To: richardred who wrote (3793)5/12/2015 9:54:39 AM
From: richardred
   of 7058
 
In Big Media Push, Verizon Buys AOL For $4.4B [Memo From AOL CEO Tim Armstrong]

techcrunch.com

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To: richardred who wrote (3928)5/13/2015 9:31:21 AM
From: richardred
   of 7058
 
Analysts speculate on higher bid for Syngenta

Swiss farm chemical giant Syngenta saw higher share prices May 11 on speculation of a more lucrative takeover bid from U.S.-based Monsanto.

Swiss English news service The Local reported European analysts thought another bid from Monsanto may be imminent.

On May 8, Syngenta’s website reported that the company received an unsolicited proposal from Monsanto to acquire the company at a price of $486 per Syngenta share with approximately 45% in cash. Syngenta’s board of directors rejected the Monsanto bid, saying in a statement that the offer “fundamentally undervalues Syngenta’s prospects and underestimates the significant execution risks.”

“Syngenta is the world leader in Crop Protection, the number three in Seeds and the first company to introduce integrated solutions for growers,” Michel Demaré, Syngenta Chairman said in the statement. “Monsanto’s proposal does not reflect the outstanding growth prospects of Syngenta’s integrated strategy and the significant future value potential of the company’s crop-focused innovation and market leading positions.”

Monsanto acknowledged its interest in Syngenta on May 8 but said on its website it would have no further comment on its offer.

Syngenta’s shares on the Swiss stock exchange rose 19.3% on May 8 and were up less than 2% in trading on May 11.

Syngenta was formed in 2000 from the merger of Novartis and Zeneca Ag Products and offers an extensive line of vegetable seeds to U.S. growers.
thepacker.com

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To: richardred who wrote (3930)5/13/2015 10:07:47 AM
From: richardred
1 Recommendation   of 7058
 
It's official, Danaher to buy Pall. IMO the only thing that's keeping this market from being totally boring is the acquisitions that are happening. At the end of the day. I think corporations have decided it's time to spend some of that cash and leverage at today low rates. In a couple of years there will be new leadership and they will have time to eliminate the overlap and integrate.


PORT WASHINGTON, N.Y. (AP) -- Danaher will spend approximately $13.56 billion to acquire Pall Corp., a company that makes water filtration systems for airplane manufacturers, public works companies and notably, biopharmaceuticals.

Danaher also announced Wednesday that it will split into two publicly traded companies.

Pall's life sciences segment had $1.5 billion in revenue in 2014, comprising more than half of the company's total revenue for the year. The life sciences unit serves customers in the biopharmaceutical market, food and beverage and medical end markets.

Danaher, which produces goods for the medical and industrial sectors, will pay $127.20 for each share of Pall Corp. share, a 7 percent premium to its Tuesday closing price of $118.62.

finance.yahoo.com

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To: richardred who wrote (3893)5/13/2015 11:20:19 AM
From: richardred
   of 7058
 
Added to MNTX today on the bad news and new low. Very untimely, but I think it has good recovery on infrastructure spending. An area long overdue IMO. Especially lacking in roads and bridges. This picture by my house echoes the theme.


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From: Cautious_Optimist5/13/2015 12:00:15 PM
   of 7058
 
FWIW, my list of M&A (prey) candidates I am following:

Two chicken enterprises; a lot of value:
SAFM (check the balance sheet and fundamental ratios.)
PPC (Prey or predator potential.)

F Still has colossal value in its inertia- GOOG and AAPL etc. to get strategic entry into transportation sector- sell off the truck division for cash.

TWTR Out on a limb here but TWTR and "tweeting" is becoming a meme, like GOOG was to search. Under the right management and vision, a synergistic social net guerrilla for a legacy global IT, telecom or news conglomerate. I think better future value than Netflix, undervalued and absolutely hated when it was $50/share a couple years ago. I realize I am frighteningly shunned in public on this TWTR bet - I like that as an indicator.

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To: Cautious_Optimist who wrote (3935)5/13/2015 1:13:01 PM
From: richardred
   of 7058
 
I am familiar with Sanderson and Pilgrim. I have to agree with your potential targets based on reasonable valuations. I also liked Hormel at one time and still follow it. Smithfield Foods (Pork) acquisition by a Chinese comes to mind. The justice dept set a present by allowing that acquisition to happen. So I wouldn't rule out a potential future bid by a Chinese company also.

Message 29694449
Message 28727339

Related food deal
Hormel Foods nears deal for Applegate Farms-sources

<span class="articleLocation">Feb 12 Hormel Foods Corp is in late-stage talks to acquire Applegate Farms LLC, a privately held producer of organic hot dogs, bacon and sausages, to enhance its branded protein offerings, according to people familiar with the matter.

A deal for Applegate Farms could be announced as early as next week and value the Bridgewater, New Jersey-based company at between $600 million and $1 billion, the people said, asking not to be named because the matter is confidential.

A representative for Applegate Farms could not be reached for comment. Hormel declined to comment.

Private equity firm Swander Pace invested an undisclosed amount in Applegate Farms in 2009. The company was founded in 1987 by current CEO Stephen McDonnell.

A sale of Applegate Farms would come amid a slew of merger activity for meat companies.

Recent high-profile deals in the sector have included Hershey Co's acquisition of jerky company Krave, Post Holdings Inc's $2.5 billion acquisition of food processing company Michael Foods, and Tyson Foods Inc's $8.6 billion acquisition of packaged meats producer Hillshire Brands.

The private equity owners of protein and sandwich supplier AdvancePierre Foods are also interviewing banks for a near-term sale of the company, sources told Reuters last week.

Hormel in August acquired Muscle Milk maker CytoSport Holdings Inc, a sports nutrition drink. (Reporting by Olivia Oran in New York; Editing by Christian Plumb)

reuters.com

P.S. I totally agree on TWTR. I joined you in owning some Twitter. Interesting that you mentioned Netflix. Carl Icahn loves big valuations. Twitter needs a push, and Carl love to push. Just maybe he'll bite if his target research team says yes. Carl has a Twitter account and there's been controversy with his personal tweets being used in his trading. These days I think he's still remembering the profit & successes he's already booked on Netflix, Apple, and E-Bay. Also remember, last I heard the Cramer charitable trust owns some twitter. That's a megaphone calling out for our TWTR stakes.

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To: richardred who wrote (3892)5/13/2015 6:44:37 PM
From: The Ox
1 Recommendation   of 7058
 
Integrated Silicon Solution, Inc. (NASDAQ: ISSI) 6.7% HIGHER; Cypress Semiconductor (NYSE: CY) issued a proposal to acquire 100% of the outstanding shares of common stock of Integrated Silicon Solution, Inc. for $19.75 per share in cash. The board of directors of Cypress has approved this proposal. The proposal is superior to the $19.25 per share sale price ISSI agreed to in the Agreement and Plan of Merger entered into with the "Consortium" on March 12, 2015.

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