Monsanto CompanyMON
shares were extremely volatile Thursday morning as investors digested
multiple reports the company could see some kind of takeover interest. About an hour before the opening bell, the stock traded up nearly 14 percent to just under $103.
While some are skeptical about the likelihood of such a massive deal (see
comments from Citi's PJ Juvekar made Thursday morning), at least one industry expert didn't disregard the chatter.
"Someone wanting to buy all or a piece of Monsanto would make sense,"
Angie Setzer, VP of Grain for Citizens. "[Monsanto] has been struggling in market development/market share, their reputation is somewhat less than perfect and they have extraordinary value. I could definitely see someone making a play for a piece of their company. It would likely be a very expensive endeavor, but to be honest...it would be one that would likely pay off big time in the end."
Setzer further pointed to recent large-scale deals DuPont/Dow and Syngenta/ChemChina. "[These have left] Monsanto and others to try and do what they can to tie up major amounts of market share and grow with or outpace their competition," she said.
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