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Monsanto takes over Delta and Pine Land (15/8/2006)

1.Monsanto to Buy Delta and Pine Land for $1.5 Billion - Bloomberg
2.Monsanto to buy Delta and Pine - Reuters
3.Monsanto acquires D&PL, will divest Stoneville assets - Delta Farm Press

COMMENT: Delta & Pine Land and Terminator

According to the Ban Terminator Campaign, Delta & Pine Land: *is the 11th largest seed company in the world *is the largest cotton seed company in the world *produces and sells conventional and GM soy and cotton seed

Delta & Pine Land has publicly declared its intention to commercialize Terminator.

Delta & Pine holds three patents jointly with the United States Department of Agriculture. These were the first patents on Terminator. Delta & Pine is conducting greenhouse tests of Terminator in the United States and has new glossy promotional material on Terminator.
http://www.banterminator.org/the_issues/the_industry/delta_pine_land_and_terminator

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1.Monsanto to Buy Delta and Pine Land for $1.5 Billion (Update1)
http://www.bloomberg.com/apps/news?pid=20601103&sid=a5hSvnsK4VgI&refer=news

Aug. 15 (Bloomberg) -- Monsanto Co., the world's biggest developer of genetically modified crops, agreed to buy cotton seed maker Delta and Pine Land Co. for $1.5 billion, reviving a deal that was scuttled in 1999

Delta and Pine Land investors will get $42 a share, the companies said today in a statement. That’s a 16 percent premium above Delta and Pine Land's closing share price yesterday. The stock has jumped 58 percent this year. Monsanto is based in St. Louis and Delta and Pine Land is based in Scott, Missouri. Closing of the deal is contingent on regulatory approvals

The acquisition, to be funded with cash and a debt offering, will add to earnings after one year and boost operating cash in the first year, Monsanto said. The company scuttled a similar deal in 1999 after concluding the U.S. Justice Department was unwilling to approve a merger "on commercially reasonable terms."

"Delta & Pine Land has strong cotton genetics, and we believe Monsanto's leadership in providing the best cotton traits can improve on this already strong base," Monsanto Chief

Executive Officer Hugh Grant said in the statement.

Grant is boosting sales of genetically modified cotton, which currently account for about 11 percent of Monsanto's engineered seeds. In March 2005, he bought Seminis Inc., the world's biggest producer of vegetable and fruit seeds.

Monsanto spokeswoman Lori Fisher said it is too early to say how much of the transaction will be funded with debt.

To contact the reporter on this story:
Jack Kaskey in New York at
jkaskey@bloomberg.net

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2.Monsanto to buy Delta and Pine
By Carey Gillam
REUTERS, Tue Aug 15, 2006
http://today.reuters.com/news/newsArticle.aspx?type=businessNews&storyID=2006-08-15T140808Z_01_N15378936_RTRUKOC_0_US-TEXTILES-DELTAANDPINE-MONSANTO.xml&archived=False

KANSAS CITY, Missouri (Reuters) - Monsanto Co. on Tuesday said it agreed to buy Delta and Pine Land Co., a leading producer and marketer of cotton-plant seeds, for $1.5 billion in cash to expand its product mix.

Under the terms of the deal, Delta and Pine Land shareowners will get $42 a share in cash, a 16 percent premium over Delta and Pine's closing stock price on Monday.

Investors reacted to the news by pushing shares higher in early trade Tuesday. Monsanto shares were up 30 cents at $45.47 on the New York Stock Exchange. Delta and Pine Land shares rose 10.3 percent to $39.96.

Monsanto, which has targeted the cotton industry as a leading growth area, said it plans to finance the deal with cash on hand and a debt offering. The acquisition is expected to boost Monsanto's earnings per share by the second year after completion of the deal, which is subject to regulatory approval.

"Delta and Pine Land has strong cotton genetics, and we believe Monsanto's leadership in providing the best cotton traits can improve on this already strong base," Monsanto Chairman Hugh Grant said in a statement.

As part of the deal, Monsanto said it would divest the U.S. assets of its Stoneville cottonseed business if required to close the transaction.

Tuesday's merger announcement comes after the two rivals spent several years locked in litigation over a failed 1999 merger attempt. Indeed, the two had a court date slated for Tuesday in Mississippi in the continued litigation but that has been sidelined because of the merger agreement, said Monsanto spokeswoman Lori Fisher.

Scott, Mississippi-based Delta and Pine is considered a leader in the cotton seed industry, operating the largest and longest-running private cotton seed breeding program in the world.
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3.Monsanto acquires D&PL, will divest Stoneville assets
Delta Farm Press, Aug 15, 2006
http://deltafarmpress.com/news/060815-monsanto-dpl/

Monsanto and Delta and Pine Land Co. announced yesterday that they have signed a definitive agreement whereby Monsanto will acquire Delta and Pine Land Co. for $1.5 billion in cash. The transaction was unanimously approved by the boards of directors of both companies and is subject to Delta and Pine Land shareowner approval, antitrust clearance, and customary closing conditions.

Under the terms of the agreement, Delta and Pine Land shareowners will receive $42 per share in cash. Monsanto intends to finance the acquisition with a combination of current cash on hand and a debt offering. The acquisition is expected to be accretive to Monsanto's earnings per share by the second year following closure of the acquisition, and Delta and Pine Land should be a contributor to operating cash in the first year

The proposed acquisition requires review and approval by the appropriate regulatory authorities, including the U.S. Department of Justice. Because of the required regulatory approvals, no time frame for the closing of the transaction has been announced.

As part of the proposed agreement, Monsanto has committed to divest U.S. assets of its Stoneville cottonseed business if required to close the transaction.

'Delta and Pine Land represents an excellent fit for our company as we look to bring value-added traits and high-quality seed to cotton growers around the world,' said Hugh Grant, chairman, president and chief executive officer of Monsanto.

'Delta and Pine Land has strong cotton genetics, and we believe Monsanto's leadership in providing the best cotton traits can improve on this already strong base.'

Tom Jagodinski, president and chief executive officer of Delta and Pine Land, said, 'Monsanto is a leading agricultural products company with a strong track record of growing and integrating diversified businesses. Our companies are a natural fit that will provide a complete platform of cutting-edge seed technologies to our global farmer customer base for years to come.'


Delta and Pine Land, Co., and Monsanto, Co., are based, respectively, in Scott, Miss., and St. Louis, Mo.

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