Monsanto to Reject Bayer Bid, Seek Higher Price


Reuters reports:  

MON.N), the world's largest seed company, will reject Bayer AG's (BAYGn.DE) $62 billion acquisition bid and seek a higher price, two people familiar with the matter said on Tuesday.

Monsanto can see the logic of combining with the German drugs and crop chemicals group, and believes a deal could get the necessary antitrust and other regulatory approvals, the people said, leaving the door open for further negotiations.

Bayer will now have to decide whether to raise its bid, even as the company faces criticism from some shareholders that its $122-per-share offer is already too high. The other options are to walk away, or mount a hostile bid.

Monsanto shares rose 1.5 percent to $107.61 in late morning trading in New York, but remain far below Bayer's bid price, underscoring investor skepticism that a deal will be reached. Bayer shares rose 3.23 percent at 87.15 euros in Frankfurt.

It was not clear what price Monsanto would be willing to sell for.

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Source:  Reuters

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