US/Germany: Bayer said to propose higher Monsanto offer & double the antitrust break fee to $3 billion

Bayer AG is proposing an increased offer and break fee as it tries to clinch the acquisition of Monsanto to create the world’s biggest maker of seeds and pesticides, according to people familiar with the matter.

Bayer is willing to raise its offer to about $129 a share, or $56.5 billion, from $127.50 a share, and double the antitrust break fee to about $3 billion, said the people, who asked not to be identified because the deliberations are private.

Monsanto’s management board is scheduled to discuss and potentially approve the proposal Tuesday, the people said. Bayer’s supervisory board is set to review the deal Wednesday, and an announcement could come shortly thereafter, the people said.

Bayer’s wooing of Monsanto has played out against a backdrop of a rapidly consolidating crop and seed industry, with a series of big deals threatening to leave just a few global players. China National Chemical Corp. agreed in February to acquire Syngenta AG, while DuPont Co. and Dow Chemical Co. plan to merge and then carve out a new crop-science unit.

Full Content: Reuters

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