German pharmaceuticals group Bayer has stepped up its pursuit of Monsanto and offered $65bn for the controversial maker of genetically modified seeds.
Bayer had already proposed the largest all-cash takeover in history with an offer of $125 a share and said it was now willing to raise its bid to $127.50.
But one major investor raised concerns about the effect on Bayer’s pharmaceuticals strategy and the combined company’s potential debt pile. Industry pundits also warned that the deal might not be worth doing once competition authorities have imposed their conditions.
In a statement, Monsanto said it had taken part in constructive discussions with Bayer about a new offer, the third since May, valuing the St Louis-based firm at $65bn.
Bayer’s proposal will create a global pharmaceutical and farm supplies giant, just as rival firms are consolidating. ChemChina agreed earlier this year to buy Switzerland’s Syngenta for $43bn, after the latter rejected takeover approaches from Monsanto. US firms Dow Chemical and DuPont are pursuing a $130bn merger, to be followed by a breakup into three businesses.
Full Content: The Guardian
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