Bayer, BASF lining up for Monsanto

Multibillion dollar seed company Monsanto was right in the thick of premarket trading in New York on Thursday, after reports emerged that German chemical conglomerates BASF or Bayer are considering a takeover bid.

Street Insider said on Wednesday that BASF had retained the services of investment banks to advise on a potential takeover.

On Thursday afternoon, Bloomberg reported that Bayer was lining up a $40bn bid for Monsanto.

The report said the German firm held preliminary discussions internally and with advisors about the possibility, though no final decision had been made.

The takeover speculation came as rumours abounded in the industry - in March it was reported that Monsanto was looking to do some form of cooperation deal with BASF and Bayer.

Monsanto was also keen to acquire Swiss pesticide and seed firm Syngenta earlier this year, before that was gobbled up by China National Chemical Corporation.