Business Companies 06 Sep 2016 Bayer raises offer t ...

Bayer raises offer to buy Monsanto

AFP
Published Sep 6, 2016, 1:12 pm IST
Updated Sep 6, 2016, 1:12 pm IST
Bayer said it would raise its offer for the US seed giant to $127.50 per share from $125.
Monsanto confirmed Bayer's improved bid for a friendly takeover and said it was evaluating the proposal, "as well as proposals from other parties and other strategic alternatives".
 Monsanto confirmed Bayer's improved bid for a friendly takeover and said it was evaluating the proposal, "as well as proposals from other parties and other strategic alternatives".

Washington: The German pharmaceutical and chemicals group Bayer on Monday said it would sweeten its offer for US rival Monsanto. In a statement released late Monday, Bayer said it would raise its offer for the US seed giant to $127.50 per share from $125. That would bring the deal's total value to almost $66 billion including debt.

Monsanto confirmed Bayer's improved bid for a friendly takeover and said it was evaluating the proposal, "as well as proposals from other parties and other strategic alternatives".

 

It said there was no guarantee a deal would be struck. Monsanto rejected Bayer's previous offer in mid-July, saying it was "financially inadequate", but left the door open to further discussions.

With its new offer, Bayer also said it has no intention of carrying out a hostile takeover.The German daily Handelsblatt reported in mid-August that Bayer was considering a hostile bid if faced with ongoing opposition from Monsanto. A deal would create a global leader in genetically modified seeds and pesticides.

Monsanto pursued its own takeover of Swiss Syngenta for more than a year as well as BASF SE's agrochemicals unit, Bloomberg reported.

 

Germany's BASF could still play the role of white knight helping Monsanto fend off Bayer's bid, Bloomberg said in mid-July. Bayer was down 0.20 percent in early trade on the Frankfurt stock exchange Tuesday.

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