Monsanto said to reject Bayer offer as it seeks higher price
US agriculture giant Monsanto is reportedly set to reject German chemical and pharmaceutical company Bayer’s acquisition bid and seek a higher price.
Bayer AG
€27.92
17:29 18/09/24
DJ EURO STOXX 50
4,835.30
23:59 18/09/24
Monsanto Co.
$0.00
19:55 09/08/24
Xetra DAX
18,711.49
19:09 18/09/24
Reuters cited people familiar with the matter as saying that while Monsanto sees industrial logic in the combination and reckons a deal would be approved by antitrust and other regulators, it also has confidence in its standalone plan and believes shareholders deserve a better offer.
On Monday, Bayer made a $62bn all-cash offer for Monsanto, saying a tie-up would be a “compelling opportunity to create a global agriculture leader, while reinforcing Bayer as a life science company with a deepened position in a long-term growth industry”.
The deal values Monsanto at $122 per share, which is 37% more than it was valued at before Bayer made an initial proposal to the group on 10 May, and is a 33% premium over the six-month volume weighted average share price.
“We have long respected Monsanto’s business and share their vision to create an integrated business that we believe is capable of generating substantial value for both companies’ shareholders,” said Bayer CEO Werner Baumann.
At 1555 BST, Bayer shares were up 3.2% to €87.14 while Monsanto was 2.7% higher at $108.82.