The deal with Delta Pine went through, then was reversed by the DOJ, it appears. Not that this really has much to do with Monsanto's track record. Just goes to show I speak the truth. Also, the terminator patent was jointly applied for by Monsanto and Delta Pine, so Monsanto does have the technology. Basically, the deal was under review by the DOJ, when Monsanto suddenly broke off talks, and announced a merger with Pharmacia and Upjohn. What great business partners they were with Delta and Pine!
7-Business: Delta Pine Land sues Monsanto for $1 billion
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Jilted Delta and Pine Land Co. sues Monsanto for $1 billion in "alimony"
Genetic engineering's once premiere corporate marriage, which not only recently ended in acrimonious separation, but failed to give birth to their sterile progeny --- the terminator seed --- has now occasioned the rejected partner to announce that it is suing its one-time suitor for at least $1 billion in "alimony" payments.
The lawsuit suit, filed by Delta and Pine Land Company in the Bolivar County, Mississippi circuit court contends that the Monsanto Corp. breached a May 8, 1998, agreement to buy the cotton seed company by failing to "use commercially reasonable efforts" to respond to requests from the U.S. Department of Justice's antitrust division when seeking regulatory clearance for the merger.
"We regret having to file this lawsuit, but we had no other choice in order to protect the interests of our company and our shareholders," Roger Malkin, chairman and chief executive of Delta Pine, told the New York Times' Carolyn Koo."At the same time, we will continue to engage in a dialogue with Monsanto and hope to achieve a resolution that is acceptable to both parties."
After announcing a $27 billion all-stock merger with pharmaceuticals firm Pharmacia & Upjohn just days before Monsanto announced on December 20 that it planned to withdraw from the Delta Pine merger and would pay Delta Pine a $81 million breakup fee.
In responding to the suit Monsanto has noted that "for a year and a half, we exercised every reasonable effort and a tremendous amount of time, energy and money to make this merger happen," according to Hendrik Verfaillie, Monsanto president. "After numerous attempts to reach an acceptable compromise with the Department of Justice, we concluded that the department's demands made no sense from a business point of view, and that to accept them would place both Monsanto and Delta and Pine Land at an unfair competitive disadvantage in the marketplace."
The suit, which will not affect existing contractual relationships between Monsanto and Delta Pine, came after two Delta Pine shareholders sued the company's board of directors for not seeking damages from Monsanto in the aftermath of the canceled merger.