Last week, in a surprise move, the German drug and chemicals company Bayer made an unsolicited acquisitions bid for Monsanto.
However, St. Louis-based Monsanto confirmed in a statement on Tuesday that they rejected Bayer’s $62 billion bid calling it “incomplete and financially inadequate.”
According to NPR, Bayer’s all-cash offer was 37 percent higher than Monsanto’s stock price before news of the possible deal broke.
“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 Hugh Grant, Monsanto Chairman and CEO. “However, the current proposal significantly undervalues our company and also does not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.”
The statement from Monsanto also signals that the company could be open to a higher bid or continued talks about the proposed takeover.
A report from The New York Times said that the combined annual revenue from sales of antibiotics, pesticides and genetically modified crop seeds would come to more than $67 billion.
Do you think Bayer will come back with a higher bid for Monsanto?
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