Monsanto no longer pursuing Syngenta partnership

Monsanto Co. announced Wednesday that it will not be entering into a partnership with Syngenta due to a mismatch of financial expectations.

Talks between the two companies are not expected to resume. Lamenting the loss of value for not only the shareowners of both companies, but farmers as well, Monsanto has indicated that it believes that a basis for constructive engagement with Syngenta is currently not possible.

Monsanto expects its existing core business to continue on its growth cycle and is planning to resume its previously approved share-repurchasing program as soon as it is logistically practical for them to do so. Monsanto management has furthered indicated that they expects its five-year plan to still be on track, in which fiscal-year 2014 ongoing earnings per share will double by 2019.

Monsanto had sent an enhanced proposal, which has been rejected, to Syngenta on Aug. 18. Elements of the augmented proposal included an increase of the cash component of the proposed transaction to approximately $487 per share. Under the terms, Syngenta shareowners would own approximately 30 percent of the new company. The reverse breakup fee was increased as well, to $3 billion, payable to Monsanto if the necessary global regulatory issues were not resolved.

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