Bayer adds extra $2 billion to Monsanto bid
pharmafile | July 15, 2016 | News story | Medical Communications, Sales and Marketing | Bayer, monsanto
German pharma company Bayer (ETR: BAYN) have upped their bid for Monsanto (NYSE: MON) to $64 billion, putting pressure on their rival in the agri-chemical sector to engage on a potential sale.
Monsanto rejected the initial bid of $62 billion, with their CEO Hugh Grant indicating that Bayer’s offer “significantly undervalues [the] company”.
Following private talks with the company, Bayer have upped their all-cash offer from $122 to $125 a share. Furthermore, the German company says it has comprehensively addressed Monsanto’s concerns around financing and regulatory matters, as well as making certain commitments to regulators to complete the acquisition, if needed. Bayer has offered a $1.5 billion reverse antitrust break fee, in an attempt to reaffirm its confidence in closing the sale.
CEO Werner Baumann comments: “We are convinced that this transaction is the best opportunity available to provide Monsanto shareholders with highly attractive, immediate and certain value. Bayer is fully committed to pursuing this transaction.”
Sean Murray
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