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Monsanto gets rest of Dekalb
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May 11, 1998: 11:40 a.m. ET
Will acquire remaining 60 percent of agricultural biotech firm for $100/share
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NEW YORK (CNNfn) - Shares of Dekalb Genetics Corp. rocketed 25 percent Monday after Monsanto Co. agreed to pay $2.5 billion for the 60 percent of the agricultural biotechnology firm it does not already own.
Monsanto -- the St. Louis-based chemical giant responsible for such products as artificial sweetener NutraSweet -- will pay $100 apiece for the additional shares.
Shares of Dekalb (DKB) soared 20-5/8 to 97-5/8 in early Monday trading as Monsanto's stock (MTC) rose 1-1/8 to 54-5/8.
Through licenses jointly owned with Monsanto, Dekalb -- based in the Illinois town of the same name -- has grown into the nation's second-largest marketer of genetically altered seed corn.
The Roberts family, which owns 56 percent of Dekalb's class A shares, has already signed on to the deal.
Under the terms of the agreement, Monsanto has contracted to provide all 2,000 Dekalb workers with continued employment for at least one year after the close.
Separately, Monsanto said Monday it will acquire cotton seed breeder and marketer Delta & Pine Land Co. in a stock swap valued at about $1 billion.
Monsanto said Delta & Pine Land shareholders will receive 0.8625 Monsanto shares for each Delta share owned. Monsanto already owns 4.7 percent of Delta's common shares. As of March 31, Delta & Pine had 38 million shares outstanding.
Delta & Pine shares fell 4-9/16 to 48-3/16 in Monday morning trading.
-- from staff and wire reports
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