Syngenta has put its vegetable seeds division up for sale in
an effort to appease shareholders who are angry that the company spurned a
takeover offer from Monsanto.
The company is also planning to buy back shares, a strategy
that usually boosts share prices.
Syngenta’s share prices fell by 16 per cent after Monsanto
dropped its bid.
Syngenta’s chief financial officer John Ramsay said that
if these measures fail to improve profitability
and market share, other options will be considered, such as joint ventures or
selling the whole seeds business.
While Syngenta isn’t in that
position now, any “compelling” offer would have to be looked at, he said.
Monsanto said during its pursuit
of Syngenta that it would sell the seeds business if the deal went through.
Bayer AG expressed interest in
buying it. BASF is considered another potential buyer.
