Monsanto (MON) Stock Jumps, Bayer Makes Unsolicited Takeover Proposal

NEW YORK (TheStreet) -- Shares of Monsanto (MON) are surging 7.33% to $104.25 in pre-market trading on Thursday after the seeds company said it received an unsolicited takeover proposal from Bayer (BAYRY).

"The board of directors of Monsanto is reviewing the proposal, in consultation with its financial and legal advisors. Monsanto will have no further comment until its Board of Directors has completed its review," the St. Louis-based company said in a statement.

There is no assurance that a transaction will happened, Monsanto noted.

The deal would aim to create the world's largest agricultural supplier and would take advantage of converging pesticides and seeds markets, Reuters noted.

Leverkusen, Germany-based Bayer said executives recently met with Monsanto to privately discuss a negotiated acquisition of the company.

"The proposed combination would reinforce Bayer as a global innovation-driven Life Science company with leadership positions in its core segments, and would create a leading integrated agriculture business," Bayer stated.

Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Monsanto stock.

The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity.

The team feels its strengths outweigh the fact that the company has had lackluster performance in the stock itself.

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.

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