Updating a previous story, Monsanto’s Board of Directors has spurned Bayer AG’s $62 billion offer for the company.
Monsanto officials said the proposal is incomplete and financially inadequate. But they also added that they’re open to continued conversations to assess whether a transaction in the best interest of Monsanto share owners 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 in a statement. “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 goes on to say that there is no assurance that any transaction will be entered into or consummated, or on what terms.
The Monsanto Board of Directors has not set a timeline for further discussions.
Citing market speculation and inquiries from its stakeholders, Bayer recently went public with some of the details of its all-cash offer to acquire all of the issued and outstanding shares of common stock of Monsanto Company for USD $122 per share or an aggregate value of USD $62 billion.