Novartis tipped to bid for Monsanto
9 November 1999
Novartis tipped to bid for Monsanto
By FWi staff
SWISS pharmaceutical giant Novartis AG is lining up a bid for US biotechnology company Monsanto, according to the Wall Street Journal.
Novartis, the worlds second largest drug company, is said to be in talks about a takeover or combining parts of its life sciences businesses with Monsantos.
CBS Marketwatch reports that Monsanto has been under pressure to boost its stock price.
It says that no agreement is imminent, as there are significant hurdles to be overcome.
These include financial issues, antitrust problems in the companies agricultural businesses, and Monsantos depressed stock price.
Novartis had approached American Home Products Corporation before AHP entered a US$70 billion (£43m) merger arrangement with Warner-Lambert, the Journal reports.
Major global agricultural and pharmaceutical companies have lately been in discussions about merging their businesses.
Novartis and Monsanto are two of the leaders in life sciences – both are at the forefront of genetically modified crop technology.