AHP, Monsanto May Scale Back Merger

American Home Products Corp. and Monsanto Co. offered to scale down the proposed $37.8-billion merger of their drug and agricultural products companies in an effort to overcome European Union antitrust hurdles, Monsanto said. The deadline for the EU ruling on the merger, originally scheduled for Sept. 17, was extended to Sept. 28 to give regulators time to assess whether the offer ensures the companies won’t grab an excessive share of EU markets, said an EU official, who asked not to be named. He also wouldn’t comment on the aspects of the merger EU regulators have identified as potential threats to fair competition. The merger would strengthen the companies’ ability to compete with rivals such as DuPont Co. and Novartis. The Federal Trade Commission in August asked the companies for more information, signaling that the consolidation of the two biotechnology giants has raised antitrust concerns. Shares of Madison, N.J.-based AHP rose 50 cents to close at $53.63, and shares of St. Louis-based Monsanto fell 25 cents to close at $57.88, both on the NYSE.