7-Misc: DuPont press release
- To: "GENET NEWS" <GENETfirstname.lastname@example.org>
- Subject: 7-Misc: DuPont press release
- From: GENET <email@example.com>
- Date: Wed, 17 Mar 99 09:57:28 -0000
- Content-Type: text/plain; charset="US-ASCII"
- Reply-To: GENET <firstname.lastname@example.org>
- Resent-From: email@example.com
- Resent-Message-ID: <"UMSbiB.A.ZDB.0Q472"@bakunix.free.de>
- Resent-Sender: firstname.lastname@example.org
- Sender: email@example.com
Read more at:
Pioneer Merger Another Major Step in DuPont Life Sciences Strategy
As reported in yesterday's news flash edition of Network News, DuPont and
Pioneer HiBred International have announced a definitive agreement for a
stock and cash merger that will result in DuPont's complete ownership of
Pioneer. DuPont currently has a 20 percent interest in Pioneer.
"This transaction is another major step in DuPont's life sciences
strategy and will strengthen and accelerate its capability to discover,
develop and commercialize a new generation of products across the value
chains for food and feed crops, food ingredients, industrial applications
and nutrition science," according to a news release issued yesterday.
Under the terms of the agreement, Pioneer shareholders will receive USD
40 per share, with 45 percent of the shares receiving cash and 55 percent
of the shares receiving DuPont stock.
Pioneer shareholders will have certain rights to elect which form of
consideration they receive.
The merger is expected to close during the summer of 1999.
The total equity value of the transaction is estimated to be
approximately USD 7.7 billion for the 80 percent of Pioneer not currently
owned by DuPont.
"One of the Most Important Mergers in U.S. History"
"I believe this is one of the most important mergers in U.S. history,"
DuPont Chairman and CEO Chad Holliday said at a news conference in New
York City yesterday following the announcement of the merger agreement
between DuPont and Pioneer. "We are joining with an old friend, to
fundamentally improve the quantity and quality of food per acre."
Chad went on to make six points:
"We do have the critical mass to lead now" in life sciences.
"With Pioneer we are leaders in the input and output traits of farming"
(adding value for the farmer and for the ultimate consumer).
"Pioneer is a leader in germ plasma."
"Pioneer has a first-rate management, under Chuck Johnson."
"Our interests are closely aligned."
"Pioneer will operate under its own name, in its own home of Des Moines,
Iowa, and with its own culture."
Chuck Johnson, chairman and CEO of Pioneer, said: "This will be the most
powerful agricultural technology force in the world. We know DuPont and
we have a common vision of increased production for farmers and the
quality of the products they grow. Plant genetics are the only way for
farmers to increase production without opening up new, fragile land." In
answer to a question, he said Pioneer had some 60 hybrids in the pipeline
and "a whole stream of opportunities to add traits" in the years ahead.
DuPont Chief Financial Officer Gary Pfeiffer said the deal was expected
to be closed by the end of the third quarter.
In a later interview on CNBC TV, Chad said: "By August this year there
will be six billion people in the world and it is our ambition to feed
them the most nutritional food possible."
He reiterated that "DuPont is a science company" incorporating different
kinds of science, including materials science.
Chad: "Let's Welcome the People of Pioneer"
In his latest letter to employees, DuPont Chairman and CEO Chad Holliday
talks about the acquisition of Pioneer, declaring: "It is a major step in
our sustainable growth strategy and our plans to increase shareholder
"This transaction will strengthen and accelerate our ability to discover,
develop and commercialize a new generation of products for food and feed
crops, food ingredients, industrial applications and nutrition science,"
"It fully supports our goal of helping improve the world's food supply by
increasing the quantity and quality of nutrition per acre.
It is truly another 'leap' for DuPont and will enhance an already
outstanding science and technology platform and marketing capability.
It will accelerate the integration of DuPont's biology, chemistry and
genomics with Pioneer's leading market position and research and
The end result should be significantly increased shareholder value.
"Both of our companies share a strong focus on customers and have
compatible cultures and values," he concluded.
"Please join me in welcoming the people of Pioneer fully into the DuPont
DuPont Pioneer Merger Provides Mutual Benefits
Commenting on the agreement for DuPont to acquire Pioneer, The Wall
Street Journal noted yesterday that there were mutual benefits.
"DuPont, whose scientists have probably had the most success at
genetically altering the nutritional attributes of crops, would get
direct control of the world's biggest proprietary seed bank as well as a
global seed sales force," the article suggested.
"Pioneer's agreement to be acquired represents a big cultural change for
the 73-year-old company, which was founded by one-time U.S. Vice
President Henry A. Wallace," The Wall Street Journal pointed out.
However, it noted benefits to Pioneer, including what DuPont brings to
the table in terms of genes and "deep pockets".
Subscribers to The Wall Street Journal Interactive Edition can read the
full report at
-| Hartmut Meyer
-| The European NGO Network on Genetic Engineering
-| Reinhaeuser Landstr. 51
-| D - 37083 Goettingen
-| phone: #49-551-7700027
-| fax : #49-551-7701672
-| email: firstname.lastname@example.org