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Speaker 1: of one tenth of one percent. I'm Charlie Pallett, and

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Speaker 1: that's a Bloomberg Business flash. This is ta Game Stock

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Speaker 1: with Kathleen Hayes and Pim Fox on Bloomberg Radio. Will

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Speaker 1: the deal get done? Will buyer consummated acquisition of Monsanto?

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Speaker 1: Here to tell us more. Jeff mccrack and Managing Editor

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Speaker 1: Global M and A I p O S, Restructurings and

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Speaker 1: Activists for Bloomberg News. He can be followed on Twitter

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Speaker 1: at A j C. McCracken. Alright, j C McCracken, tell

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Speaker 1: us what's going on with Buyer or Bear? For those

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Speaker 1: old enough to remember and Monsanto? Well, Mr Grant, Hugh Grant,

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Speaker 1: the CEO of Monsanto. About two years ago, he tried

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Speaker 1: to buy Monsanto, tried to buy c Genta, and it's

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Speaker 1: all his fault because that didn't work out, not the

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Speaker 1: first time or the second time. But he he showed

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Speaker 1: the world and showed his investors that there needs to

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Speaker 1: be consolidation and that he would support a big consolidation

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Speaker 1: play among the agri chemical space. Well, he's no longer

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Speaker 1: or the buyer. He is the target as Bayer or Buyer,

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Speaker 1: however you want to pronounce the German company. They've made

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Speaker 1: a run at Monsanto. Their first offer was roughly a

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Speaker 1: hundred and twenty to a share. They bumped into a

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Speaker 1: hundred and twenty five a share. The two sides are

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Speaker 1: making some progress now on the price and probably more importantly,

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Speaker 1: the termination fee, which is what would get paid to

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Speaker 1: Monsanto if regulators in Europe or in the United States

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Speaker 1: block to deal. Why would Hugh Grant, the chief executive

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Speaker 1: of Monsanto, why would he go from being an acquirer

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Speaker 1: to being someone that would be acquired? And should anybody

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Speaker 1: in their St. Louis headquarters be nervous they're going to

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Speaker 1: be job cuts? Is there overlap? If? Certainly there will

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Speaker 1: be some job cuts, and people don't like to admit that,

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Speaker 1: but when two similar companies or companies that do similar

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Speaker 1: things come together, there will inevitably be people who are

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Speaker 1: in HR, or people who are in I T or

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Speaker 1: in accounting, you know, just operations that could be done

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Speaker 1: by you know, someone else in another country that they

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Speaker 1: will lose. Those those jobs will go away, whether they

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Speaker 1: are hundreds or thousands of people. Uh. To answer your

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Speaker 1: first question about how Monsanto became a target, it's simply

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Speaker 1: the fact that they couldn't get this in gender deal

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Speaker 1: done and they've become They've just become an easy takeout

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Speaker 1: candidate for someone like Buyer. Buyer is roughly ninety billion

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Speaker 1: plus in market cap, whereas before all this began, Monsanto

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Speaker 1: was half a um. They've not had a great couple

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Speaker 1: of years. Mon Santo's miss some earnings targets and pulled

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Speaker 1: back on some of their guidance in terms of profitability

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Speaker 1: and EVA dot. So they had been shrinking until this

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Speaker 1: offer came along. Now, this deal, if it gets done,

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Speaker 1: we're going to be we'll probably value Monsanto at sixty

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Speaker 1: billion or more, which is a lot of money. But

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Speaker 1: Buyer is a big enough company and can borrow enough

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Speaker 1: money banks in Europe are willing to lend to them

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Speaker 1: that they can get that deal done. All right, Just

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Speaker 1: talking about money, Uh, we know that Hugh Grant, the

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Speaker 1: chief executive, would get about twenty six million dollars if

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Speaker 1: he was terminated after a change in control of the company.

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Speaker 1: We're not implying that he would be, but that's just

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Speaker 1: in his contract. Does Buyer really need this deal? Why

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Speaker 1: are they doing it? There's been a slowdown, if you will,

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Speaker 1: in spending by the by their their customers, their consumers,

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Speaker 1: if you will, which are mostly big farms. Um, there's

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Speaker 1: been a lot of pressure on food prices. There's been

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Speaker 1: a lot of pressure on these farmers and they're not

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Speaker 1: spending as much money on the seeds or don't want

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Speaker 1: to spend as much money on the seeds and the

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Speaker 1: fertilizers that they would get from buyer or mont Santo.

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Speaker 1: You know the other thing that's going on if your

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Speaker 1: buyer is you can't ignore the fact that sin Jenta

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Speaker 1: did get acquired by a big Chinese company, cam China

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Speaker 1: and Dow and du Ponter both are also coming together.

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Speaker 1: So if you don't consolidate, you are going to be

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Speaker 1: under pressure from others who are coming together and doing

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Speaker 1: the kinds of deals you wish you would be doing

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Speaker 1: at buyer regulatory oversight. I mean, these guys are gonna

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Speaker 1: end up controlling what maybe three quarters of the market

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Speaker 1: for like cotton, and yeah, so I would not be

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Speaker 1: surprised if the regulators, either in EU or in the

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Speaker 1: United States took very long, hard looks at these deals.

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Speaker 1: That's why the termination view is so important, because if

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Speaker 1: you're Monsanto and you agree to a deal and put

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Speaker 1: yourself on the block, you're not put yourself on the block,

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Speaker 1: but show people you're willing to be sold, and then

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Speaker 1: deal gets blocked six months from now. You want something

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Speaker 1: for the effort, which in their case will probably be

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Speaker 1: a couple of billion dollars That the biggest I think

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Speaker 1: hurdle will be serfious. The Committee on Foreign Investment in

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Speaker 1: the United States. They they will investigate whether there's a

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Speaker 1: national security issue. Mon Santo doesn't make missiles or bombs,

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Speaker 1: but they are very crucial to our food supply here

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Speaker 1: in the United States, so people, the regulators there will

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Speaker 1: look very closely at who buyer is and what they're

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Speaker 1: thinking of doing. Thanks very much for enlightening us us

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Speaker 1: up to date. I know you're gonna be riding about

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Speaker 1: this until the deal closes. Jeff McCracken, he is Managing

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Speaker 1: Editor Global m and A I P O S were

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Speaker 1: structuring an activist for Bloomberg News, and you can follow

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Speaker 1: him on Twitter at j C McCracken. Al Right, we

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Speaker 1: turn now to the world of politics and Mike Nitsa.

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Speaker 1: He is our executive editor for Bloomberg Politics and he

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Speaker 1: can be followed on Twitter at Mike nits and I

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Speaker 1: double z A. And he's here to tell us a

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Speaker 1: little bit about the campaign. And I want to start off,

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Speaker 1: Mike by getting your thoughts or just give us an

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Speaker 1: update on the evidence that Donald Trump may or may

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Speaker 1: not be changing or altering or in some way amending

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Speaker 1: his position on immigration reform. Sure. So this week actually

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Speaker 1: started on Sunday with the new campaign manager, Kelly and Conway,

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Speaker 1: saying that this would be immigration Week and uh he

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Speaker 1: would be holding a round table and then uh and

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Speaker 1: then delivering a major policy speech on Thursday that would

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Speaker 1: articulate I was supposed to be in Colorado, yes, and uh,

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Speaker 1: and then by by Monday that was pushed back or delayed. Uh,

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Speaker 1: the schedule was kind of thrown up. Uh, the whole

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Speaker 1: schedule was kind of torn up. And then this morning

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Speaker 1: we received a new schedule that did not include the

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Speaker 1: the immigration policy speech but did include uh more round

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Speaker 1: tables and the campaign says that Trump is seeking counsel

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Speaker 1: on his immigration policy right now. Is that because it

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Speaker 1: has been misinterpreted, at least according to the Trump campaign

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Speaker 1: by obviously uh Democratic opponents. Yeah. I think they they

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Speaker 1: feel like they've uh that the the reporting on on

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Speaker 1: their actual plan has been inaccurately reported by by the media.

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Speaker 1: But but also they've had problems in the past in

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Speaker 1: rolling out their their message and making sure people are

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Speaker 1: are getting the right uh, the big things right. And

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Speaker 1: so I think, uh, when it comes to the main

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Speaker 1: leg of the immigration policy that they're focusing on this week,

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Speaker 1: which is uh, Trump's pledge over a year ago to

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Speaker 1: to uh to support all illegal immigrants. UH. And now

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Speaker 1: they're saying that that's that's not you know, a major

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Speaker 1: shift from where policy is at right now. According to

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Speaker 1: US law, undocumented undocumented emmirates must be sent back. It's

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Speaker 1: just not being enforced to to the fullest, is kind

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Speaker 1: of where they're ending up on this now. He made

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Speaker 1: some of these comments in an appearance on Fox News

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Speaker 1: with Bill O'Reilly. He did that was that was an

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Speaker 1: amazing interview. I think any close observer of of Donald

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Speaker 1: Trump had their jaw dropped for at least a few

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Speaker 1: seconds of it when he appeared to give Obama credit

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Speaker 1: for for the work he'd done in deporting undocumented immigrants.

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Speaker 1: And in fact, UH President Obama has been labeled supporter

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Speaker 1: in chief by by immigration rights groups. UH, you know

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Speaker 1: as recently as a few years ago. UM. So he

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Speaker 1: he kind of said that he would model his own

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Speaker 1: approach after Obama's and uh and apply the law. He

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Speaker 1: just he would just do it with with more energy,

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Speaker 1: is what he suggested. Tell us about Donald Trump and

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Speaker 1: whether the spending that the campaign is doing. Will it

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Speaker 1: match what Hillary Clinton is doing? Because I understand that,

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Speaker 1: you know, the NFL season is upon us, and the

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Speaker 1: Democrats they say they're going to spend millions. Yeah, I

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Speaker 1: don't think there's any way that the Trump campaign can

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Speaker 1: spend as much as the Clinton campaign. They got a

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Speaker 1: much later start in uh in raising money, mostly because

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Speaker 1: Trump was self funding his primary run and that was

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Speaker 1: a major selling point for him. Uh. And then it

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Speaker 1: took a little longer than usual to set up the

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Speaker 1: general election fundraising operation. Uh. They raised a lot of

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Speaker 1: money in July, definitely almost reached parody with the Clinton campaign. Uh,

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Speaker 1: but it's it's still Uh. It's not only a challenge

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Speaker 1: to raise the money but also to spend it. And

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Speaker 1: I think what we saw in July is that they

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Speaker 1: weren't spending the money on ads. They were spending it

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Speaker 1: on on television ads, which is usually a huge expenditure

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Speaker 1: for for campaigns, and also ground operations where you're you're

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Speaker 1: paying to open offices and get people to go door

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Speaker 1: to door and can convince voters to vote for you

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Speaker 1: in battleground states. According to a spokesman for Priorities USA,

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Speaker 1: which is the political Action committee backing Hillary Clinton. They

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Speaker 1: say that they have not spent the bulk of a

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Speaker 1: hundred and sixty million dollars in ad reservations that they've

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Speaker 1: already made. Yeah, it's really, uh, it's it's it's really

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Speaker 1: a completely uh asymmetric war when it comes to that.

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Speaker 1: Thanks very much for joining us. Mike Nizza is Executive

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Speaker 1: editor Bloomberg Politics. Go ahead follow him on Twitter at

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Speaker 1: Mike Nizza and I double z A. You're listening to

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Speaker 1: taking Stockhl'm pim Fox My co host Kathleen Hayes is

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Speaker 1: on her way to Jackson Hole, Wyoming for the Federal

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Speaker 1: Reserve Annual Symposium. Janet Yellen speaks Friday, ten am Wall

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Speaker 1: Street Time,