- U.S. agribusiness giant Monsanto Co. rejected Tuesday, May 24 the $62 billion takeover bid by Germany's Bayer AG as too low, but said it was willing to entertain further talks on a merger, AFP reports.
Monsanto chairman and chief executive Hugh Grant said in a statement that the offer "significantly undervalues our company" and does not give enough assurance on how Bayer would finance the deal or overcome possible regulatory challenges.
Monsanto's board "unanimously views the Bayer AG proposal as incomplete and financially inadequate, but is open to continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved," the statement said.
Late Tuesday Bayer issued a statement saying that it "looks forward to engaging in constructive discussions with Monsanto" while sticking to its offer.
Bayer made what amounts to the largest-ever takeover offer by a German company on Monday for the world leader in seeds, farm pesticides and genetically modified crops.
The $122 a share cash offer sent Monsanto shares surging Monday, but only to $106 amid expectations of Monsanto's rejection and questions over whether Bayer would increase the bid. Bayer shares had tumbled on the news, AFP says.
Monsanto's shares finished up another 3.1 percent on Tuesday at $109.30.
Bayer shares traded in Frankfurt had fallen last week on expectations of the proposal, dropping to 84.42 euros ($94.09) on Monday.
With unconfirmed reports of Monsanto's coming rejection already in the markets, Bayer shares rebounded 3.2 percent Tuesday to 87.15 euros.
