Monsanto (MON) Stock Rising, Reportedly Discussing Confidentiality Pact With Bayer
NEW YORK (TheStreet) -- Shares of Monsanto (MON) are surging by 2.85% to $106.40 in afternoon trading on Monday, as the company is in talks with Bayer AG (BAYRY) about negotiating a confidentiality agreement that would allow extensive due diligence, Reuters reports.
It's uncertain whether the latest discussions will lead to a confidentiality pact, but the move suggests that Bayer's recent offer could help move along the negotiations.
Last week, Bayer upped its takeover offer for the St. Louis-based seed producer to $125 per share from $122 per share. Monsanto will still require Bayer to raise its offer further in order to close the deal, a source familiar to the situation told Reuters.
Shares of Bayer, a German chemical company, are down by 1.60% to $102.04 this afternoon.
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. TheStreet Ratings has this to say about the recommendation:
We rate MONSANTO CO as a Buy with a ratings score of B. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its good cash flow from operations and expanding profit margins. We feel 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
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