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National & World Ag News Headlines |
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Monsanto to Reject Buyout Offer From Bayer Ag
USAgNet - 05/25/2016
Monsanto Co. has said no to Bayer AG's $62 billion acquisition bid. According to Reuters, 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. Monsanto and Bayer declined to comment.
It was not clear what price Monsanto would be willing to sell for. The Saint Louis, Missouri-based company has confidence in its standalone plan and believes shareholders deserve a better offer, the people said. They asked not to be identified because the
deliberations are confidential.
Global agrochemicals companies are racing to consolidate, partly in response to a drop in commodity prices that has hit farm incomes. Seeds and pesticides markets are also increasingly converging.
ChemChina plans to buy Switzerland's Syngenta for $43 billion, after Syngenta rejected a bid from Monsanto. Dow Chemical Co and DuPont are forging a $130 billion business.
With German rival BASF SE having previously considered a tie-up with Monsanto, Bayer has moved to avoid being left behind.
Bayer said on Monday it would finance its cash bid with a combination of debt and equity.
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