Monsanto Threatened Over Acquisition

Delta & Pine Land Co., the leading U.S. cottonseed producer, said Monsanto Co. owed it $81 million for terminating a $1.3-billion acquisition bid and threatened legal action to protect its shareholders. Monsanto announced its decision a day after it agreed to merge with Pharmacia & Upjohn Inc. in a $23.3-billion stock transaction. The St. Louis-based life sciences and drug company on Monday withdrew its application for Justice Department approval of the Delta & Pine transaction, citing antitrust objections to the deal. A Monsanto spokesman said the company had no comment on the statement. Monsanto’s announcement Monday came after investors showed disappointment over its proposed merger with Pharmacia & Upjohn, which includes provisions to keep part of Monsanto’s agricultural products unit. After dropping 6.7% on Monday, Pharmacia’s shares fell $1.28 to close at $45.63 on the NYSE. Monsanto closed off $1.02 at $36.25 on the Big Board after Monday’s 11% drop. Shares in Delta & Pine slipped 69 cents to close at $15.50, also on the NYSE.