Bayer sweetens acquisition offer to Monsanto by over 2 pc

German pharmaceuticals and crop science major Bayer has yet again sweetened its offer to acquire US-based biotechnology firm Monsanto by over 2 per cent, taking the value to over USD 65 billion.
Confirming that it is in "advanced negotiations" with Monsanto concerning a proposed transaction, Bayer said: "While key terms and conditions have not yet been agreed, Bayer would be prepared to provide a transaction consideration of USD 127.50 per Monsanto share only in connection with a negotiated transaction."
In July, Monsanto had rejected Bayer's offer of USD 125 per share at a total value of USD 65 billion, up from a previous offer of USD 122 per share.

Reacting to the new offer, Monsanto said it has received a updated non-binding offer for a potential acquisition by Bayer in cash.
"Monsanto is continuing these conversations as it evaluates this proposal, as well as proposals from other parties and other strategic alternatives to enable its Board of Directors to determine if a transaction in the best interest of its shareholders can be realised."
Monsanto further said there is no assurance that any transaction will be entered into or consummated, or on what terms.

Bayer in a statement today said there can be no assurance that the parties will enter into an agreement.

The proposed transaction would be subject to regulatory approval and other customary closing conditions. The key conditions of a definitive transaction agreement must be approved by the Supervisory Board of Bayer AG, the company added.
The German firm is looking at the combination with Monsanto to create a global leader in the agricultural industry by combining complementary skills with minimal geographic overlap.
While it has a leading position in crop protection, Monsanto is extremely strong in seeds and traits, it said.
In India, Monsanto has dropped plan to launch next generation GM cotton seed. It has withdrawn application seeking approval for the next generation genetically modified (GM) cotton seeds in India because of regulatory uncertainties.