Monsanto Co., the world's largest seed company, turned down Bayer AG's 62 billion acquisition bid as "incomplete and financially inadequate" on Tuesday, but said it was open to engage further in negotiations. Monsanto's decision, first reported earlier on Tuesday by Reuters, puts pressure on Bayer to decide whether to raise its bid, even as the company faces criticism from some shareholders that its 122-per-share cash offer is already too high. The other options are to walk away, or mount a hostile bid. Monsanto shares rose 2.5 percent to 108.70 in afternoon trading in New York, but remained far below Bayer's bid price, underscoring some investor skepticism that a deal can be done. Bayer shares rose 3.23 percent at 87.15 euros in Frankfurt.
German drug and chemicals company Bayer AG announced Monday that it has made a 62 billion offer to buy U.S.-based crops and seeds specialist Monsanto. The proposed combination would create a giant seed and farm chemical company with a strong presence in the U.S., Europe and Asia. Bayer said the all-cash offer values shares of Monsanto at 122 each. That compares with a closing price Friday of 101.52 and is 37 percent higher than the closing price of 89.03 on May 9, the day before Bayer made a written proposal to Monsanto. Bayer had said on Thursday that its executives met recently with their Monsanto counterparts "to privately discuss a negotiated acquisition" of the specialist in genetically modified crop seeds, which is headquartered in St. Louis, Missouri.
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.
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.
FILE - In this May 23, 2016, file photo the Bayer AG corporate logo is displayed on a building of the German drug and chemicals company in Berlin, Germany. German pharmaceutical giant Bayer AG said Friday, Oct. 13, 2017 it's reached a 5.9 billion euro (US$7 billion) agreement to sell businesses from its Crop Science unit to German chemical company BASF to alleviate regulatory concerns over its planned acquisition of American seed and weed-killer company Monsanto Co. (AP Photo/Markus Schreiber, file) The Associated Press