ZURICH: Monsanto Co. has made an increased takeover offer to Syngenta AG, seeking to draw the Swiss pesticide producer to the negotiating table after its earlier approach was rejected, according to people familiar with the matter.
The recent offer values Syngenta at about 470 Swiss francs per share in cash and stock, compared with the 449 francs the U.S. firm offered earlier this year, the people said, asking not to be identified discussing a private situation. That would translate to a market capitalization of about 43.7 billion francs ($47 billion), data compiled by Bloomberg show.
The proposal contains a higher proportion of cash than the prior bid, which envisioned a split of 45 percent cash to 55 percent Monsanto shares, the people said. Syngenta’s stock jumped 7.5 percent to 384.4 francs at 9:06 a.m. in Zurich on Tuesday, giving the company a market value equal to $38 billion.
The proposed break fee to be paid by Monsanto should antitrust regulators block the deal has also risen, increasing to $3 billion from the $2 billion previously promised, one of the people said. Syngenta’s board is scheduled to meet as soon as Tuesday to decide on how to respond to the increased offer, according to a person familiar with the matter.
