US: Monsanto rejects Bayer $62 billion merger offer

Monsanto Co. rejected Bayer AG’s $62 billion takeover offer, saying the biotech seed giant’s business merited a higher price, though Monsanto said it remains open to further talks on a deal.

The move, which was widely expected, puts pressure on the German pharmaceutical and chemical conglomerate to sweeten its offer over protests from some of its investors who fear buying Monsanto would deeply indebt Bayer and move the company far deeper into agriculture.

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” said Monsanto Chief Executive and Chairman Hugh Grant. But he also said the offer “significantly undervalues” Monsanto and doesn’t address certain risks related to a deal, including potential financing and regulatory hurdles.

Bayer detailed Monday its plan to buy Monsanto and add the U.S. company’s world-leading franchise in high-yielding crop seeds and genetic engineering to Bayer’s broad portfolio of insecticides and herbicides. A union would create the world’s largest seed and crop chemical supplier and make agriculture about half of Bayer’s overall sales.

Monsanto said Tuesday its board of directors unanimously viewed Bayer’s proposal as “incomplete and financially inadequate,” but it remains open to “continued and constructive conversations.” The company said no deal was guaranteed.

Full Content: The Wall Street Journal

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