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SAAB

Spyker, Saab lawsuit rejected by GM

US carmaker General Motors has denied any criminal wrongdoing in the bankruptcy of Swedish carmaker Saab, calling on US authorities to throw out a lawsuit filed by Dutch carmaker Spyker which is seeking $3 billion in damages.

Spyker, Saab lawsuit rejected by GM

The lawsuit, filed in early August, charges GM criminally interfered in an operation that could have made it possible for Saab to restructure and stay afloat, because the US automaker wanted to dominate the Chinese market.

Saab, a former GM subsidiary, filed for bankruptcy in December after teetering on the edge of the abyss for almost two years. A last-ditch bid to raise funds in China, with the group Youngman, was nixed by GM over technology transfer issues.

In a document filed Friday in US District Court in Michigan, GM denied any criminal action or intent.

“Saab had granted GM a contractual right to consent or to withhold its consent to the transaction plaintiffs proposed,” it said.

“In fact, all GM is alleged to have done is publicly express its lack of support for plaintiffs’ last-ditch proposal. That conduct cannot constitute improper interference as a matter of law.”

GM sold Saab in 2010 to Spyker. A deal reached parallel to the sale allowed Saab to keep using GM technologies to keep production going, but allowed GM to stop the arrangement if Saab changed hands.

“Spyker bought Saab knowing this financial history, and subject to terms spelled out unambiguously in the agreements attached to the complaint. Those agreements included clear contractual limitations on the future use of GM’s technology, and on the transfer of that technology to others,” the GM filing stressed.

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MONSANTO

Bayer buys Monsanto for $66 bn after months-long pursuit

German chemicals giant Bayer said on Wednesday it had signed a $66 billion (€58.8 billion) takeover deal with US seeds and pesticides firm Monsanto.

Bayer buys Monsanto for $66 bn after months-long pursuit
Photo: DPA

“Bayer and Monsanto today announced that they signed a definitive merger agreement under which Bayer will acquire Monsanto for USD 128 per share in an all-cash transaction,” the firms said in a statement.

Bayer repeatedly increased its offer to Monsanto since its first $122-per-share bid, but the US firm had until now held out for more cash.

“This represents a major step forward for our crop science business,” Bayer chief executive Werner Baumann said in the statement.

The two firms said that the deal “brings together two different, but highly complementary” businesses.

Monsanto shareholders still have to approve the deal, as do regulators – with Bayer staking a $2 billion reverse antitrust break fee in case the merger is rejected by US or European authorities.

The deal is expected to be completed by the end of 2017.

Bayer has been pursuing Monsanto since late May, when it made an initial bid of $122 per share (€109), valuing the US genetically modified (GM) crop giant at $62 billion. Monsanto rejected that bid, but said it was “open” to further talks.

Since then the German chemicals behemoth has raised its offer twice, first to $125 per share in July and then to $127.50 last week, but was rebuffed each time.

Mosanto held out for more money, calling the July bid “insufficient”.

The long-mooted tie-up has rung alarms bells for some farmers who fear the power of the combined company in the market for seeds and pesticides, while opponents of genetically-modified food in Europe worry about Monsanto's influence on the continent.

“We do not like this transaction, because we think that Bayer is overpaying significantly,” wrote analyst Peter Spengler of DZ bank on Wednesday before the deal was confirmed.

Monsanto's genetically modified (GM) seed offerings and Climate Corp data analytics offering to farmers would fit in with Bayer's crop protection lines, the firms said in the statement announcing the deal.

The combined group will also emerge with a total research and development budget of €2.5 billion. Added together, Bayer and Monsanto booked sales of €23 billion in 2015.

Bayer said that it expects synergy savings from the merger will allow it to add $1.5 billion to its underlying profit as measured by EBITDA within three years.

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