Monsanto nixes Bayer’s bid, remains open to talks

Associated Press

NEW YORK

Monsanto rejected Bayer’s $62 billion takeover bid, calling it “incomplete and financially inadequate.”

However, the seed company suggested Tuesday that a higher bid might be accepted, saying that it remains open to talks. Bayer replied it is committed to completing the deal.

Monsanto Co. Chairman and CEO Hugh Grant also said in a written statement that the initial offer failed to address potential financing and regulatory risks.

Bayer AG, a German drug and chemicals company, made an all-cash bid that valued Monsanto’s stock at $122 per share. The company previously said that it planned to finance the acquisition with a combination of debt and equity, the latter to be raised largely by issuing new shares.

It said late Tuesday that it is confident it can address any potential financing or regulatory issues related to the proposed deal.

A combination of the two businesses would create a giant seed and farm-chemical company with a strong presence in the U.S., Europe and Asia.