Kevin Killeen

ST. LOUIS –(KMOX)–St. Louis-based Monsanto is not commenting on a report it may be in courtship-mode with a German chemical company.   

Reuters is now reporting that Germany’s BASF has no plans to buy biotech seed giant Monsanto, despite an earlier report that BASF may try to take over Monsanto.   

Looking for clues,  the Managing Director and Research Analyst with Stifel Nicolaus — Horst Hueniken — says he’s watching the stock market.

“If the stock price of Monsanto keeps rising, or falling, that will be one indicator,” Hueniken said, “Another indicator will be what BASF stock does in the European market place.  Typically, when the acquiring company, especially when they’re paying higher prices, their stocks will go down.”

Monsanto stock closed up Tuesday just under $2 a share on the news — for a gain of about three-percent.

“The stock has not responded that much to this news,” Hueniken said, “The stock market is not betting heavily on something happening here.”

Monsanto employs some 22,000 workers worldwide, including about 4,000 in St. Louis.   Were the alleged buyout to take place,  Hueniken doesn’t see big layoffs here.

“The only folk that may be at risk somewhat would be head office staff,” Hueniken said, “Clearly BASF would want some management.”

BASF is not commenting on the report either. 

Copyright KMOX.


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