Monsanto rejects Bayer's improved $55bn takeover offer

US seeds and agrichemicals giant Monsanto has rejected the improved $55bn offer from German rival Bayer as "financially inadequate" but said it remains open to further talks.

Responding to Bayer's increased $125 per share offer and $1.5bn 'reverse antitrust break fee' from last Thursday, Monsanto said its board of directors unanimously viewed the revised proposals "as financially inadequate and insufficient to ensure deal certainty".

Monsanto, which is being advised by Morgan Stanley and Ducera Partners, added that it remains "open to continued and constructive conversations with Bayer and other parties to assess whether a transaction that the board believes is in the best interest of Monsanto shareowners can be realized".

On Thursday, following several weeks of private talks with Monsanto, Bayer revealed that it had increased its offer to $125 a share from $122.

The Leverkusen group claimed to have "comprehensively addressed" Monsanto's questions concerning financing and regulatory matters and said it was prepared to "make certain commitments to regulators, if required, to complete the proposed acquisition of Monsanto", providing "transaction certainty" with a syndicated loan agreed to be co-underwritten by five banks.

"We are convinced that this transaction is the best opportunity available to provide Monsanto shareholders with highly attractive, immediate and certain value. Bayer is fully committed to pursuing this transaction," said Bayer chief executive officer Werner Baumann at the time.