Monsanto has rejected a 62bn ( 43bn) offer from Bayer that would have created the world's biggest agricultural supplier. The US company said he offer was "financially inadequate", but left the door open for a potentially higher bid. High Grant, Monsanto chief executive, said the proposal significantly undervalued the company. He also raised concerns about whether a deal would be approved by regulators. Monsanto shares rose almost 3% to 109.11 in afternoon trading in New York.
German drug and crop chemical group Bayer AG on Thursday announced details of a sweetened 64 billion bid for Monsanto Co. as it tries to put the U.S. seed company under pressure to engage further. Analysts and some Monsanto shareholders were quick to opine that Bayer's latest offer, the largest all-cash takeover bid on record, was unlikely to entice Monsanto. Bayer, however, is hoping that the sweetened offer will spur enough Monsanto shareholders to call on the company's management to be more accommodative. Global agrochemicals companies are racing to consolidate, partly in response to a drop in commodity prices that has hit farm incomes. Bayer made its bid for Monsanto public in May, but the two companies have made little progress since in negotiating a deal.
Bayer's planned $62.5 billion takeover of seeds maker Monsanto is set to close on Thursday, Germany's Frankfurter Allgemeine Sonntags Zeitung reported. A Bayer spokesman declined to comment on the Sunday newspaper report. Bayer last week won U.S. approval for the Monsanto takeover after months of delays in a drawn-out review, clearing a major hurdle for a deal that will create by far the largest seeds and pesticides maker. Bayer has said it would very soon close the transaction, which it needs to do because after June 14, Monsanto could withdraw from the takeover agreement and seek a higher price. A woman uses a Monsanto's Roundup weedkiller spray without glyphosate in a garden in Ercuis near Paris.
Monsanto Co. President Brett Begemann uttered those words last week to a small group of investors and a Reuters reporter when asked how the world's largest seed company he helps lead might fit with German drugs and crop chemicals group Bayer AG. Those four words, said on the sidelines of a New York conference, set off a series of events leading to the disclosure of Bayer's confidential, 62 billion bid for Monsanto, the largest all-cash corporate takeover offer on record. Bayer had sent a confidential acquisition proposal to Monsanto on May 10. Media reports surfaced two days later that Bayer was considering a bid. Initially, neither company would comment on whether any talks were taking place - a common practice for many corporations that prefer to negotiate deals in private and only tell Wall Street if they manage to come to terms.
Monsanto is rejecting the second takeover bid from Bayer. The German drug and chemicals company last week boosted its offer from 62 billion, to about 65 billion, or 125 per share. On Tuesday, Monsanto Co., a seed company, called revised offer inadequate, as it did the initial bid. The St. Louis company says however that it remains open to talks with Bayer and others about a deal. This material may not be published, broadcast, rewritten or redistributed.