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Monsanto Rejects Bayer's Latest Offer
USAgNet - 06/14/2016

Bayer AG's bid to buy Monsanto Co. for more than $60 billion has hit an impasse that could pose a challenge for the blockbuster agriculture tie-up. Bayer has offered to buy the U.S. seed giant for $62 billion including debt, or $122 a share, which Monsanto last month rejected as too low.

In an effort to bring Monsanto to the negotiating table, Bayer in recent days sent the company a letter saying it has lined up financing for the deal and is confident any regulatory obstacles can be overcome, reports Market Watch.

It sought access to detailed business information, known as due diligence, which Bayer said could lead to a higher offer. Bayer didn't increase its bid.

Monsanto, which considered the proposal little changed, responded by refusing to grant such access until Bayer raises its bid, the people said. Monsanto also told the German company that in addition to more money, it needs clarity on other matters including regulatory risks before agreeing to a deal, the people added.

The deal would combine Monsanto, the biggest seed provider with a leading position in biotech crop development, with Bayer, which has a robust lineup of pesticides but a smaller presence in major crops like corn and soybeans. Rivals Dow Chemical Co. and DuPont Co. are pursuing their own combination and Syngenta is working toward a $43 billion sale to China National Chemical Corp.

Bayer has secured more than $60 billion in debt financing for the deal from a handful of banks, people familiar with the matter have said. It would have to assume about $8 billion in Monsanto debt.

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