AHP's merger hopes are dashed
15 Jan 2000
For the second time, American Home Products has failed to secure a merger with another life sciences company. Talks between AHP and crop biotechnology specialist Monsanto have broken down. Disagreements over who would head the combined company are believed to be the root of the problem.
AHP's previous attempt at a merger, with Anglo-American pharmaceuticals giant SmithKline Beecham, also broke down, when SKB began its ill-fated flirtation with Glaxo Wellcome.
Monsanto, meanwhile, is labouring under the weight of the debts it incurred while building up its controversial biotech empire - a situation it hoped would ease after the merger with AHP. It may now be forced to sell some of its genetics interests, or enter into co-marketing deals involving some of its pharmaceutical products.
