Monsanto rebuffs initial Bayer bid, but leaves door open

Monsanto’s first reaction to Bayer’s £62 billion takeover proposal is to reject the offer as insufficient, while not ruling out further negotiation.

 

A board statement from the St Louis-based business describes the offer as “incomplete and financially inadequate”, but says directors are “open to continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved”.

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” comments  Monsanto chairman and chief executive Hugh Grant. “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 sets no assurance that any transaction will be entered into or timeline for further discussions.

Posted on May 25, 2016 and filed under Company News, Top Story.