KANSAS CITY, Mo. (AP)—The German pharmaceutical giant Bayer AG has sweetened its bid for Monsanto, saying that its latest offer, now worth almost $56 billion reflects, “constructive negotiations” in its quest to build a global chemical and seed company.
Bayer is offering $127.50 per Monsanto share, up from $125 in July, a bid that the St. Louis seed company had called inadequate. Excluding debt of about $9 billion, the latest proposal values Monsanto at $55.8 billion, about $1 billion more than it had offered less than two months ago.
Monsanto confirmed the latest bid, also calling its ongoing negotiations with Bayer “constructive.”
“Monsanto is continuing these conversations as it evaluates this proposal, as well as proposals from other parties and other strategic alternatives,” it said in a company release.
A combination of the two businesses would create a giant seed and farm chemical company with a strong presence in the U.S., Europe and Asia. Both are familiar brands on farms around the globe.
Bayer’s farm business produces seeds as well as compounds to kill weeds, bugs and fungus. Monsanto produces seeds for fruits, vegetables and other crops including corn, soybeans and cotton, as well as the ubiquitous weed-killer Roundup.
Source: www.capitalpress.com