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Monsanto raises offer for Syngenta to $47 billion - source

Published 24/08/2015, 17:58
© Reuters. Flowers grow in front of Swiss agrochemicals maker Syngenta's logo at the company's headquarters in Basel
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By Mike Stone

(Reuters) - U.S.-based Monsanto Co (N:MON) has increased its offer to buy Switzerland's Syngenta AG (VX:SYNN) from CHF 449 per share to CHF 470 per share, valuing the Swiss company at around $47 billion (30 billion pounds), a person familiar with the matter said on Monday.

Monsanto wants to combine its world-leading seeds business with Syngenta's own seeds and pesticides. Syngenta has rejected a previous proposal and refused to open its books.

The increased offer is meant to end the stalemate between the two firms and encourage Syngenta to the negotiating table. Monsanto's sweetened offer is primarily comprised of an increase to the cash portion of its cash and stock offer, the person added.

A Syngenta representative did not immediately respond to a request for comment and a Monsanto representative declined to comment.

In addition to the new cash offered, the bid includes an increased break-up fee, from $2 billion to $3 billion, if the transaction is blocked by regulators or falls apart for other reasons the person said.

© Reuters. Flowers grow in front of Swiss agrochemicals maker Syngenta's logo at the company's headquarters in Basel

Syngenta is under pressure from some shareholders. Hedge fund Paulson & Co has taken a stake in the Swiss company and could push for it to accept an offer from Monsanto, people familiar with the matter have said.

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