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Monsanto going whole hog
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February 11, 1998: 11:46 a.m. ET
St. Louis-based life science firm mulls plans to buy rest of Dekalb stock
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NEW YORK (CNNfn) - Shares of Dekalb Genetics Corp. catapulted more than 50 percent Wednesday morning after Monsanto Co., a maker and seller of high-value agricultural and pharmaceutical products, said it is "actively considering" plans to acquire all of the remaining Dekalb shares it doesn't already hold.
Dekalb stock shot up 15-1/2 points to 48, edging past the company's 52-week high of 47.
St. Louis-based Monsanto, a life sciences company devoted to solving growing global food needs through the use of innovative bio-technologies, already holds about 10 percent of Dekalb's A shares and nearly 45 percent of the company's B shares.
Monsanto President Hendrik Verfaillie made the announcement less than an hour after Dekalb said it had decided to pursue a business combination with an eye towards maximizing its growth potential.
"Dekalb has a long history as a key player and innovator in the seed industry," Verfaillie said. "They've been a leader in successfully bringing biotechnology traits to farmers around the world, and we're extremely pleased with our relationship with them."
Dekalb, based in DeKalb, Ill., develops crop seed hybrids and hybrid swine breeding stock for sale to farmers worldwide. It is the nation's number two marketer of hybrid seed corn, with total 1997 sales of $451.4 million.
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