Monsanto rejects Bayer bid, but keeps options open
Monsanto on Tuesday announced that its board of directors “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.”
“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,” Grant said.
“There is no assurance that any transaction will be entered into or consummated, or on what terms and the Monsanto board has not set a timeline for further discussions,” the St. Louis-based company said.
Later in the day, Bayer announced that it “looks forward to engaging in constructive discussions with Monsanto regarding the proposed transaction.”
Bayer reiterated that its $122 per share all-cash proposal “provides full and certain value for Monsanto shareholders.”
“We are pleased that Monsanto’s board shares our belief in the substantial benefits an integrated strategy could provide to growers and broader society,” said Werner Baumann, CEO of Bayer AG.
“We are confident that we can address any potential financing or regulatory matters related to the transaction. Bayer remains committed to working together to complete this mutually compelling transaction.”
Monsanto and Bayer both said they had no plans for further comment.
–The Hagstrom Report
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