Monsanto (MON) Stock Drops, Looking for Another Deal

Monsanto (MON) might be looking to acquire BASF SE’s (BASFY) agriculture-solutions unit.
By Rachel Aldrich ,

NEW YORK (TheStreet) -- Shares of Monsanto (MON)  are down 0.72% to $100.40 in pre-market trade as the company looks to strike a deal with BASF SE (BASFY), Reuters reports.

Monsanto, a St. Louis-based seed producer, would acquire the German chemical company's agriculture-solutions unit in the deal. In return, BASF would receive newly issued shares of Monsanto, according to Bloomberg.

This comes after Monsanto rejected a recent offer by Bayer AG (BAYRY), who offered $62 billion for a complete takeover.

Monsanto's board is not set on either avenue, as members are split between both the Bayer and BASF deals and the potential of staying independent, Bloomberg reports.

Shares of BASF are up 3.54% to $71.90 in pre-market trade, while shares of Bayer closed at $103.25 on Wednesday.

Separately, TheStreet Ratings rated this stock as a "buy" with a ratings score of B.

The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. TheStreet Ratings feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

You can view the full analysis from the report here: MON

Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. 

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