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Monsanto sells seed unit
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August 6, 1999: 12:04 p.m. ET
Sale seen clearing way for long-planned acquisition of Delta and Pine Land
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NEW YORK (CNNfn) - Monsanto Co. agreed Friday to sell its cotton seed unit to the buyout firm Hicks Muse, a move that may help the pharmaceutical and agricultural products company overcome regulatory hurdles to its proposed $1.5 billion acquisition of No. 1 U.S. cotton seed breeder Delta and Pine Land Co.
St. Louis-based Monsanto (MTC) put its Stoneville Pedigreed Seed Co. unit up for sale in January in what analysts said was an attempt to satisfy the Justice Department, which is concerned that its acquisition of Delta and Pine Land would give it too much control over the cotton seed market. Delta dominates the industry, while Stoneville ranks second.
Delta said in May that its board had voted to extend the deadline for completing the buyout until the end of the year because regulators had not yet approved the June 1998 deal.
Financial terms of Friday's all-cash deal weren't disclosed.
Emergent Genetics Inc., Hicks Muse's management affiliate for seed industry deals, will invest in the company with the Dallas-based buyout company. Stoneville's management will remain in place and no jobs will be cut, the companies said.
Hicks Muse and Emergent Genetics together bought Indusem S.A., a Chilean seed production company, in February, and Danish seed company L. Daehnfeldt A/S in November 1998.
Shares of Monsanto slipped 2 to 38 in late morning trading Friday. Delta and Pine Land (DLP) shares gained 1-3/8 to 30-1/2. 
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Monsanto
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