Syngenta, Monsanto Reviving Talks ‘Unsurprising’: Morgan Stanley
2015-05-01 08:43:26.568 GMT
By Chiara Remondini
(Bloomberg) -- Morgan Stanley says “unsurprising” that
M&A speculation has come up again as Syngenta is facing
operating pressure from adverse FX, weak vols., according to
note.
* Brokerage (equalweight on Syngenta) notes Syngenta shrs
underperformed EU chemicals, MON by ~30% since start of 2013
* N. America, LatAm herbicide mkt would be key area where
combined mkt shares would likely exceed ~50% in Crop
Protection; main overlap in Seeds would be in N. America
given Monsanto’s dominance in region
* N. America, LatAm herbicide mkt would be key area where
combined mkt shares would likely exceed ~50% in Crop
Protection; main overlap in Seeds would be in N. America
given Monsanto’s dominance in region</li></ul>
* Bloomberg Intelligence says Monsanto would need to issue
more equity vs 2014 to stay within stated net leverage limit
of 1.5x
* Monsanto’s debt capacity has declined due to $5.7b of
debt issuance in last yr to fund a $10b shr buyback
program
* Monsanto’s debt capacity has declined due to $5.7b of
debt issuance in last yr to fund a $10b shr buyback
program</li></ul>
* NOTE yday: Monsanto is said to approach Syngenta again about
a takeover, almost a year after a previous attempt fell
apart
* NOTE April 17: Syngenta 1Q sales missed ests., repeated 2015
outlook
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
Gaurav Panchal
2015-05-01 08:43:26.568 GMT
By Chiara Remondini
(Bloomberg) -- Morgan Stanley says “unsurprising” that
M&A speculation has come up again as Syngenta is facing
operating pressure from adverse FX, weak vols., according to
note.
* Brokerage (equalweight on Syngenta) notes Syngenta shrs
underperformed EU chemicals, MON by ~30% since start of 2013
* N. America, LatAm herbicide mkt would be key area where
combined mkt shares would likely exceed ~50% in Crop
Protection; main overlap in Seeds would be in N. America
given Monsanto’s dominance in region
* N. America, LatAm herbicide mkt would be key area where
combined mkt shares would likely exceed ~50% in Crop
Protection; main overlap in Seeds would be in N. America
given Monsanto’s dominance in region</li></ul>
* Bloomberg Intelligence says Monsanto would need to issue
more equity vs 2014 to stay within stated net leverage limit
of 1.5x
* Monsanto’s debt capacity has declined due to $5.7b of
debt issuance in last yr to fund a $10b shr buyback
program
* Monsanto’s debt capacity has declined due to $5.7b of
debt issuance in last yr to fund a $10b shr buyback
program</li></ul>
* NOTE yday: Monsanto is said to approach Syngenta again about
a takeover, almost a year after a previous attempt fell
apart
* NOTE April 17: Syngenta 1Q sales missed ests., repeated 2015
outlook
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editors responsible for this story:
James Ludden at +44-20-3525-2645 or
jludden@bloomberg.net
Gaurav Panchal