Monsanto (MON) Stock Spikes, Bayer Said to Explore Bid

NEW YORK (TheStreet) -- Shares of Monsanto (MON) are climbing 12.91% to $102 in pre-market trading on Thursday as Bayer (BAYRY) is exploring a possible bid for its U.S. rival, according to sources cited by Bloomberg.

The deal would create the world's biggest supplier of seeds and farm chemicals.

Leverkusen, Germany-based Bayer has held preliminary talks internally and with advisers about acquiring Monsanto, which has a market value of nearly $40 billion, the sources added.

Bayer is valued at about $96 billion and has discussed how to finance a deal, including potential asset sales, Bloomberg said.

No final decision has been made and Bayer could decide not to pursue a bid or could explore other transactions with St. Louis-based Monsanto, such as joint ventures or asset sales.

Separately, TheStreet Ratings Team has a "Hold" rating with a score of C+ on the stock.

The primary factors that have impacted the rating are mixed. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity.

However, the team also finds weaknesses including a generally disappointing performance in the stock itself, feeble growth in the company's earnings per share and generally higher debt management risk.

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