US/Germany: Bayer ‘confident’ it can still strike deal with Monsanto

Two days after Monsanto rejected Bayer AG’s takeover attempt because $62 billion wasn’t enough money, the German drug and crop chemical giant says it’s confident it can still strike a deal.

The historic, all-cash deal would have formed the largest seed and pesticide company in the world, but Monsanto’s board unanimously spurned Bayer’s unsolicited bid for being incomplete and financially inadequate.

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” Hugh Grant, Monsanto chairman and CEO, said 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.”

Despite the snub, Bayer is looking forward to further talks with Monsanto, Bloomberg reported.

“We are pleased that Monsanto’s board shares our belief in the substantial benefits an integrated strategy could provide to growers and broader society,” Bayer CEO Werner Baumann said in a statement. “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.”

Full Content: Bloomberg

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