Dive Brief:
- Syngenta CEO Mike Mack is stepping down from his position following the company's rejection of a $47 billion takeover bid from U.S. rival Monsanto. CFO John Ramsay will lead the company in the interim.
- "Shares were up 4.4 percent at 323.60 Swiss francs at 0840 GMT following the announcement, with traders saying the change could rekindle bid speculation. But a source close to Syngenta said that, as Ramsay is not a member of the board and is unlikely to become one, the board's attitude towards a takeover was unlikely to change," Reuters reported.
- "In our view, it would be best to appoint an industry insider — but outside person — with a fresh viewpoint on Syngenta," according to a note from Kepler Cheuvreux.
Dive Insight:
Syngenta has been under increasing pressure from shareholders since management rejected Monsanto's takeover bid, especially after reporting a 12% drop in revenue last quarter, at which time the company also warned its 2015 earnings would slip.
Syngenta management is attempting to prove value for shareholders by divesting its vegetable seeds and flower seeds units as well as instituting a $2 billion buyback.