Global seed company Monsanto has rejected the unsolicited US$62bn takeover proposal from Bayer.
Monsanto’s board of directors was unanimous in their view that the proposal was incomplete and financially inadequate, though the board said it is open to further discussions.
“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 company statement released 24 May. “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.”
Bayer had offered an all-cash buy out of US$122 per share, a 37 per cent premium on the Monsanto share price as of 9 May 2016.
The German-headquarter life sciences company said that the acquisition of Monsanto would see the two companies integrated to form an “innovation powerhouse”.