Monsanto Pays Delta & Pine a Breakup Fee

Delta & Pine Land Co. said that its would-be merger partner Monsanto Co. paid it an $81-million termination fee and lifted a restriction on the cotton seed company’s talking to potential suitors. Monsanto, which had agreed to buy Delta in a deal valued at $1.9 billion when it was first announced in May 1998, withdrew a regulatory filing relating to the acquisition, citing delays in the review and demands by the Justice Department. The move effectively ended the deal with Delta, although Monsanto said it did not preclude further efforts with U.S. regulators. Analysts said there was little doubt that the Monsanto deal was dead and Delta would probably look elsewhere for a partner that would help it compete in a rapidly consolidating industry. Delta is the nation’s largest cotton seed breeder. A spokeswoman for Scott, Miss.-based Delta said the company “continues to explore all options for the company to maximize shareholder value,” but declined to comment on whether the company is for sale. A spokeswoman for St. Louis-based Monsanto could not immediately be reached for comment. Delta shares closed off 25 cents at $17.13, while Monsanto’s stock closed off 44 cents at $35, both on the NYSE.