Syngenta's (SYT) Discount to Offer Price Should Narrow Significantly - Deutsche Bank
- Futures rise as 'Trump rally' rolls on
- Broadcom Ltd. (AVGO) Tops Q4 EPS by 11c
- Sibanye Gold (SBGL) to Acquire Stillwater Mining Company (SWC) in $2.2B Deal
- Exclusive: ECB rejects Monte Paschi's request for more time to raise cash - source
- Coca Cola (KO) Announces James Quincey to Succeed Muhtar Kent as CEO; Kent to Continue as Chairman
Get the Pulse of the Market with StreetInsider.com's Pulse Picks. Get your Free Trial here.
Deutsche Bank maintained a Buy rating on Syngenta (NYSE: SYT) with a price target of CHF 430. Earlier ChemChina and Syngenta announced that the companies have received clearance on their proposed transaction from CFIUS. In the view of analyst Virginie Boucher-Ferte, CIFUS clearance removes a key risk on the deal, and Syngenta's discount to the offer price should narrow significantly.
"Syngenta shares had been trading at a very large (15-20%+) discount to the offer price since the ChemChina bid on Feb 3. The main reason has been CFIUS risk which was seen as a complete “black box”. This now means that the deal is highly likely to go through as we don’t see the antitrust process as a deal breaker due to very limited overlaps (Syngenta has a 20% market share in Crop Protection globally against c5% for ChemChina through Adama). In addition Syngenta management said earlier this year that if required, ChemChina was ready to divest some of their existing Ag assets belonging to Adama). However antitrust reviews remain a lengthy process due to the number of jurisdictions involved and different markets/product categories within that so we still don't expect the deal to close before November," said Boucher-Ferte.
Shares of Syngenta closed at $79.51 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Finisar (FNSR) PT Raised to $44 at Needham & Company, Estimates Raised Sharply
- BMO Capital Cuts Price Target on Comtech Telecom (CMTL) to $16 Following 1Q
- Restoration Hardware (RH) PT Cut to $30 at Cowen
Create E-mail Alert Related CategoriesAnalyst Comments
Related EntitiesDeutsche Bank
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!