Wednesday, October 27, 2010

Monsanto (NYSE:MON) Shares Boosted on Takeover Rumors

The on-again, off-again rumors and speculation surrounding the possible takeover of agriculture giant Monsanto (NYSE:MON) are making their rounds again today, and the share price of the company shot up in response, although they've pulled back a little as the trading day has went on.

Maybe the highly reported bid by BHP (NYSE:BHP) for Potash (NYSE:POT) has stirred up the rumor pot again concerning Monsanto.

Of course plunging from their annual peak of a little over $87 a share has something to do with it as well, as they're probably considered a bargain at this time, as the probability of corn prices remaining higher is real, and that could cause the share price of Monsanto to rebound.

If a company was interested, they wouldn't want to wait for that to happen where they would then have to pay a strong premium for the company.

Monsanto will always be controversial because of its products, but they're especially weak and beaten down now, probably the reason of a potential takeover rears its head on a consistent basis.

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