Monsanto Terms Bayer's Proposal as Incomplete and Financially Inadequate

Monsanto Company

reacted to the unsolicited proposal made by Bayer. On Monday, Bayer came out with an unsolicited offer to buy for $62 billion. According to the company, its board felt unanimously that Bayer AG proposal was incomplete and financially not enough. However, Monsanto indicated that it was open to continued, as well as, constructive conversations to assess whether a transaction would be the best in the interest of its shareholders. The company's chairman and CEO, Hugh Grant, said, "We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer's business. 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." Monsanto said that there is no assurance that any transaction would be entered into or consummated, or on what terms. The company said that its board did not set a timeline for further discussions and Monsanto does not intend to make further comment at this time. On Tuesday, shares of the company traded 1.88 percent higher.