Topic: How To Invest

Wall Street Stock Forecaster Hotline – Friday, March 16, 2018

Article Excerpt

MONSANTO CO., $117.77, New York symbol MON, develops and sells technology-based agricultural products, such as genetically modified seeds, to farmers, grain processors and food companies. It also makes weed- and pest-control products. The stock fell 5% this week in response to media reports that U.S. anti-trust regulators want German chemical and pharmaceutical maker Bayer AG to sell more assets as part of its takeover of Monsanto. In September 2016, Monsanto accepted a $128.00-a-share takeover offer from Bayer. The all-cash deal is worth $66 billion and includes Monsanto’s debt. The two companies still aim to complete the transaction later this year. If Bayer can’t complete the takeover, it will pay Monsanto a $2.0 billion breakup fee. That’s equal to 4% of Monsanto’s $54.3 billion market cap (the total value of all outstanding shares). The company could then use the breakup fee to buy back shares or increase its dividend; the current annual rate of $2.16 a share yields 1.8%. OUR RECOMMENDATION: Monsanto is still a..