In a statement released late Monday, Bayer said it would raise its offer for the U.S. seed giant to $127.50 per share from $125.
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German drug and chemical giant Bayer AG has upped its bid for Monsanto Co.to $65 billion from the $62 billion offered in May.
However, it said that discussions about Bayer’s new, higher approach were “constructive” but claimed it was considering “proposals from other parties and other strategic alternatives”.
Monsanto rejected a $125-a-share offer in July, describing it as “financially inadequate and insufficient to ensure deal certainty”. Monsanto also agreed to allow Bayer to conduct a due diligence check on the business, said other sources close to the matter.
Earlier this week German daily Rheinische Post reported that Bayer could raise the offer to $130 per share in order to clinch a deal with Monsanto “in a swift and friendly way”.
Bayer (OTCPK:BAYRY +1.5%) and Monsanto (MON +0.5%) are within a week or two of closing on a deal, with MON telling Bayer that it is “close” on price, CNBC reports.
SURVEY SHOCK: The Institute for Supply Management said US service companies grew at a far slower pace in August than they had in July. Dow Chemical Company and DuPont merged in 2014, forming a $130 billion company, and ChemChina purchased Syngenta, a company Monsanto attempted to acquire, for $43 billion in February. Falling crop prices have weighed on Monsanto’s profits and share price in the past year, making it vulnerable to a takeover.
A deal would create a global leader in genetically modified seeds and pesticides.
The company was founded in 1901 and its first product was saccharin, the artificial sweetener. GMO varieties of corn and soybeans now account for the majority of those crops in the U.S.
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Aside from an increase in their bid, Monsanto has also asked for clarifications on possible risks and other matters before the two companies coming to an agreement.
