Monsanto rejects Bayer's $62B buyout
NEW YORK -- Monsanto rejected Bayer's $62 billion takeover bid on Tuesday, calling it "incomplete and financially inadequate."
However, the seed company suggested that a higher bid might be accepted, saying that it remains open to talks.
Monsanto Co. Chairman and Chief Executive Officer Hugh Grant also said in a written statement that the initial offer failed to address potential financing and regulatory risks.
Bayer, a German drug and chemicals company, made an all-cash bid that valued Monsanto's shares at $122 each. The company previously said that it planned to finance the acquisition with a combination of debt and equity, the latter to be raised largely by issuing new shares.
A combination of the two businesses would create a giant seed and farm chemical company with a strong presence in the U.S., Europe and Asia. Bayer's farm business produces seeds as well as compounds to kill weeds, bugs and fungus. Monsanto, based in St. Louis, produces seeds for fruits, vegetables and other crops including corn, soybeans and cotton, as well as weed-killer Roundup.
-- The Associated Press
Top European bank sees trouble ahead
FRANKFURT, Germany -- European banks are likely to struggle to make profits in the months ahead and will have to cut costs, merge or change their business strategies to return to solid health, the European Central Bank said Tuesday.
The banks' woes present a hurdle for the economy of the 19-country eurozone, where lenders are the source of most financing for business. In the United States, companies more often issue debt on capital markets.
In its review of financial stability in the currency union, the European Central Bank said the region's banking system had weathered volatility in markets at the start of the year, and remained stable. However, it said that "most risks have increased" since the last such review in November.
It said "euro area banks continue to be confronted with an outlook of low profitability," weighed down by low interest rates, a tepid recovery in the euro countries, and by bad loans in some countries.
The central bank, which is responsible for overseeing banks as well as interest-rate policy in the eurozone, warned that some banks may need to cut costs further or merge with other banks.
-- The Associated Press
Europe will allow merger of beer giants
LONDON -- The European Union's regulator has given the go-ahead to the proposed merger of Anheuser-Busch InBev and SABMiller, clearing another hurdle for the combination of the world's two biggest beer-makers.
The deal is conditional on selling practically the entire SAB beer business in Europe.
European Commissioner Margrethe Vestager said Tuesday's decision will "ensure that competition is not weakened in these markets and that EU consumers are not worse off."
The EU says Europeans buy around $140 billion worth of beer annually.
The sale is meant to ease concerns that AB InBev, which makes Budweiser, Busch and Michelob, would have a stranglehold on the European market. SABMiller owns brands such as Miller, Peroni, Pilsner Urquell and Grolsch.
AB InBev is selling brands around the world to meet competition concerns.
-- The Associated Press
Domino's sued, accused of underpaying
ALBANY, N.Y. -- New York's attorney general has sued Domino's Pizza Inc. and three franchisees alleging they underpaid workers based on payroll reports generated by the parent company's computer system.
"We've uncovered rampant wage violations at Domino's franchise stores, and intensive involvement by Domino's headquarters that caused many of these violations," New York Attorney General Eric Schneiderman said Tuesday. "At some point, a company has to take responsibility for its actions and for its workers' well-being."
Schneiderman said the company knew since at least 2007 that its payroll software undercalculated gross wages while still encouraging franchisees to use it.
The suit filed Monday night in state Supreme Court in Manhattan alleges the three franchises and the company, as joint employers, underpaid workers at least $565,000 at 10 New York stores. It also seeks to determine full restitution owed to workers, a court finding that Domino's defrauded its franchisees and violated state law, and a monitor to ensure future compliance.
The Ann Arbor, Mich.-based company called Schneiderman's lawsuit disappointing, saying it "disregards the nature of franchising and demeans the role of small business owners." The company said it has worked with his office for three years trying to help franchises comply with New York's complex wage laws.
-- The Associated Press
Cargill ends search, will stay in Kansas
WICHITA, Kan. -- Agribusiness giant Cargill said Tuesday that it will keep its protein operations in Wichita, Kan., and search for a new facility to house them.
Wichita is home to the company's beef business and its turkey and cooked meat business, which includes deli meats. Its processed protein services, such as its North American egg business and its food distribution, also are located in Wichita.
"We didn't choose Wichita because we thought we could survive. We chose Wichita because we believed we will thrive here," Cargill corporate vice president Brian Sikes said.
The Minneapolis-based company had been considering moving its Wichita operations to another location, citing workflow issues with having people in multiple buildings in the city. The company has been looking for the past six months at relocating its protein operations, possibly to Texas or Colorado, before ultimately deciding that Wichita is "the right place for us," Sikes said.
Most of the 900 employees that work in Wichita are housed in a 10-story building, although some also work in leased space in another building. The company will begin searching Wednesday for a new location in Wichita, Sikes said.
Cargill cited a "collaborative atmosphere" between the company and city and state officials to creating a business environment that will enable the company to meet its customers' needs. Sikes declined to specify what financial incentives that involved.
-- The Associated Press
Business on 05/25/2016