Syngenta Shares Rise on Takeover Report

ZURICH—Syngenta AG shares surged Friday after a report that the Swiss pesticides and seeds maker could be the target of a nearly $42-billion offer from China National Chemical Corp.

Basel-based Syngenta rejected an initial offer that valued it at 449 Swiss francs per share, or 41.7 billion francs, Bloomberg reported early Friday. Syngenta and China National Chemical both declined to comment. Shares in Syngenta surged 7.8% in early trading Friday in Switzerland, to 372.6 Swiss francs.

The offer was rejected due to regulatory concerns by Syngenta's management, but the two companies haven't broken off talks, Bloomberg reported.

Syngenta's management rejected a takeover approach by Monsanto Co. earlier this year that was valued at roughly $46 billion.

Syngenta's management has been under pressure from some of its shareholders after rejecting that deal. St. Louis-based Monsanto's offer in late August had represented a 43% premium to the Swiss company's market value at the time, and a tie-up would have created the world's largest supplier of crop seeds and chemicals.

The Swiss company turned down the approach saying it undervalued the company and would face opposition from regulators. The move sparked an outcry from shareholders, which was followed by the exit of Syngenta Chief Executive Mike Mack, who had led the company since 2008. Mr. Mack has been replaced on an interim basis by Chief Financial Officer John Ramsay while the company searches for a replacement.

Syngenta has launched a $2 billion share buyback and said it would consider selling its vegetables seeds business as parts of moves to appease angry investors. Earlier this month, The Wall Street Journal reported Syngenta was discussing with DuPont Co. a potential combination with DuPont's agriculture division.

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November 13, 2015 06:15 ET (11:15 GMT)

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