U.S-based Monsanto Co refused a sweetened $64 billion acquisition proposal from Bayer AG, thought said it was open to further discussions with the German multinational chemical and pharmaceutical company, besides other interested parties.
The latest rejection has put pressure on Bayer to further sweeten its proposal in order to access Monsanto’s books. According to a recently published report by Reuters, the two companies have been in talks regarding a potential confidentiality deal.
Monsanto reported on Tuesday that its board collectively viewed Bayer’s latest offer as financially inadequate and deficient to ensure deal certainty. The company said that it remains open to constructive discussions with Bayer and other potential parties to assess whether a deal that the board thinks is in the best interest of Monsanto shareholders can be realized.
Bayer revealed last week that it lifted its bid by $3 per share. The latest offer of $125 per share by the German company is the biggest all-cash bid on record. It also proposed a $1.5 billion reverse anti-trust breakup payment, which is equivalent to roughly 2.3 percent of the agreement’s value.
Monsanto wants Bayer to further sweeten its proposal, including a surge in the breakup fee, ahead of offering Bayer access to financial data, Reuters reported citing sources close to the matter. Access to confidential data has been a key sticking point in Bayer’s discussions with Monsanto since the German healthcare group proposed to acquire Monsanto in May.
Few days back, Bayer argued that it had addressed Monsanto’s questions regarding financing and regulatory matters and stated it was ready to make certain vows to regulators, if needed, to complete a deal.
An investor in Bayer, Henderson Global Investors has called for a vote on the planned acquisition of Monsanto. Few other shareholders have also shown concerns that Bayer might overpay to ink a deal.