Bayer waiting for Monsanto to engage after rejected quote: sources

© Reuters. A Monsanto logo design is imagined in the business headquarters in Morges

By Greg Roumeliotis (Reuters) – Monsanto Co (N:-RRB-, the world’s largest seed business, has still not opened its books more than 2 weeks after it rejected Bayer AG’s (DE:-RRB- $62 billion acquisition offer however left the door open to a possible offer, according to individuals familiar with the matter. The deadlock reveals that little development in negotiations has actually been made considering that Monsanto on May 24 denied its German peer’s $122-per-share cash offer however said it was open to “continued and positive discussions.” Monsanto has stated that Bayer’s offer “significantly undervalues (the) business as well as does not sufficiently address or provide reassurance for some of the potential financing and governing execution risks related to the acquisition.” Bayer, however, has no strategies to increase its offer without very first evaluating Monsanto’s secret information, the sources stated on condition of privacy because of the confidentiality of the talks. The Leverkusen-based business requires access to Monsanto’s books prior to it can choose whether it can pay a greater cost, in addition to offer a more in-depth plan on ways to attend to potential antitrust risks, the sources included. Bayer likewise has no objective presently to go hostile with its quote, the sources said. Monsanto, based in St. Louis, has not straight told Bayer that it is searching for much better terms in order for it to offer the German company access to confidential information, according to among the sources. Nevertheless, Monsanto’s lack of engagement demonstrates that it not only sees Bayer’s offer as too low, however that it does not even consider it as a basis for settlements, the sources stated. The scenario did not change even after Monsanto held a routine board conference today to approve a quarterly dividend of 54 cents per share. Bayer declined to comment, while a Monsanto spokesperson did not react to a demand for comment. The Wall Street Journal had reported previously on Friday that Bayer had actually made a new takeover technique to Monsanto that was rebuffed, in part because it didn’t consist of a higher cost. Bayer’s unsolicited bid for Monsanto is the biggest all-cash takeover on record, according to Thomson Reuters data, just ahead of InBev SA’s $60.4 billion offer for Anheuser-Busch in June 2008. International agrochemicals companies are racing to consolidate, partially in response to a drop in product costs that has actually hit farm incomes. Seeds and pesticides markets are likewise increasingly converging. ChemChina prepares to buy Switzerland’s Syngenta (S:-RRB- for $43 billion, after Syngenta turned down a bid from Monsanto. Dow Chemical Co (N:-RRB- and DuPont (N:-RRB- are forging a $130 billion business. Disclaimer: Fusion Media want to remind you that the information consisted of in this website is not always real-time nor precise. All CFDs (stocks, indexes, futures) and Forex costs are not supplied by exchanges however rather by market makers, therefore prices might not be accurate and may differ from the actual market price, suggesting rates are indicative and not proper for trading purposes. Therefore Fusion Media does n`t bear any duty for any trading losses you might incur as a result of utilizing this data. Fusion Media or anybody involved with Fusion Media will decline any liability for loss or damage as an outcome of reliance on the info consisting of information, quotes, charts and buy/sell signals contained within this site. Please be completely informed relating to the threats and costs associated with trading the monetary markets, it is one of the riskiest investment kinds possible.

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