For a deal like this, I also think next week is too soon. For Syngenta - Monsanto, it was about 1-2 months between offers. Similarly, for Syngenta - ChinaChem, it was also months between offers. They just agreed to talk yesterday. 1 week to hammer out details from both sides is too short. Stock might wander in the neat term.
Offer was announced at $122 and stock closed at $106. Now it is trading at $111. This just shows you there is money to be made. You just need to be skillful.
The deal may very well fall apart but for the near-term I can help but think there is still potential for MON share price to rise. Today we had both companies directly confirm they believe in the deal and want to work to make it happen. The key question is how long does one hold MON stock until most of the share gains are had before the long drawn out regulatory process
Analysts are mentioning this is the minimum price Monsanto wants. This price is financially doable for Bayer ... will be accretive to earnings in a couple of years
The exact wording was "open to discussing potential path forward." Seems like a very accommodating tone ... let's make this deal happen.
The industry is rife with consolidation. Dow and Dupont. ChemChina and Syngenta. Now Bayer and Monsanto. Actually, Monsanto tried acquiring Syngenta and even the agricultural part of Bayer not too long ago. So all these players want it and expect it to happen.
For those aspects to be the limiting factor, Monsanto would have to accept the offer first. Upon acceptance, there should be a bump up in stock price. Rejection by Bayer shareholders or government would take a while allowing the stock to maintain elevated levels for an extended period of time. So why the strong sell?
There are other risk?
* Bayer withdraws bid because of shareholder backlash
* MON rejects bit because too low and there are no subsequent offers
I guess the automotive industry is capital extensive. Within the past year, GM debt went up by $16B to $50B. Ford debt went up $9B to $93B. Maybe we should start bashing these companies on their message boards?
Interesting. It sounds like the are particularly interested in the grain and rail parts of the business. They are offering an arrangement to break up the company and offer up an even higher net price to shareholders. $950M for the two divisions. Auction the remaining three divisions
The number is as of 3/31/2016. It will be interesting if the holdings have changed post-AT&T. Unfortunately, I don't think we will know until July when Form-4 is due.
Yeah, it's had a really nice ramp this afternoon. You would think that with 10M float and 3M short, there would be possibility for a really nice short squeeze
Anju, Goodluck to you. Looks like Shak is ramping back up.
BTW, how can Morgan Stanley have a sell rating with a price target of $40?