Why Would Monsanto Reject This Much Money?
U.S. seed giant Monsanto has declined Bayer AG’s $64 billion acquisition offer and says it is open to further talks with the company as well as other parties.
Though the rejection wasn’t all surprising, it puts more pressure on Bayer to sweeten the pot. Monsanto’s board unanimously viewed Bayer’s latest bid as “financially inadequate and insufficient to ensure deal certainty.”
Reuters recenty reported that the two companies have been in negotiations about a potential confidentiality agreement. In the confidentiality agreement, which would allow access to additional information, German Bayer is looking forward to continued dialogue with Monsanto.
“Monsanto remains open to continued and constructive conversations with Bayer and other parties to assess whether a transaction that the board believes is in the best interest of Monsanto share owners can be realized,” the company said.
Disclaimer: We have no position in Monsanto Company (NYSE: MON) and have not been compensated for this article.