Monsanto To Consider Bayer's Revised Proposal For Acquisition

New Delhi: US-biotech major Monsanto on Friday said its board would review the revised nearly $65-billion takeover bid from German pharma and chemical giant Bayer AG.

In May, Bayer AG had announced a $62-billion all-cash offer to acquire Monsanto Co but the same was rejected by the latter.

Yesterday, Bayer had raised its all-cash offer to Monsanto shareholders from $122 to $125/share. It also offered a $1.5-billion reverse anti-trust break fee.

Monsanto has a significant presence in India and has played a key role in increasing cotton output through its genetically-modified (GM) technologies.

In a filing to the BSE, Monsanto India informed that its parent firm Monsanto Company "has received a revised, non-binding proposal from Bayer AG for a potential acquisition of Monsanto."

"The Board of Directors of Monsanto will review the proposal, in consultation with its financial and legal advisors," the filing added.

Monsanto said it would have no further comment until its Board of Directors has completed its review. "There is no assurance that any transaction will be entered into or consummated, or on what terms".

Monsanto has three entities in India -- Monsanto India Ltd (MIL), Monsanto Holdings Pvt Ltd (MHPL) and JV firm Mahyco Monsanto Biotech India Ltd (MMBL) with a staff strength of more than 1,000.

While rejecting Bayer's offer on May 24, Monsanto Company had termed the Bayer AG proposal "as incomplete and financially inadequate" but said that the company was open to "continued and constructive conversations".

"We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer's business, Monsanto Chairman and CEO Hugh Grant had said.

"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," Mr Grant had said.

Monsanto to consider Bayer's revised proposal for acquisition

New Delhi: US-biotech major Monsanto today said its board would review the revised nearly USD 65-billion takeover bid from German pharma and chemical giant Bayer AG.

In May, Bayer AG had announced a $62-billion all-cash offer to acquire Monsanto Co but the same was rejected by the latter.

Yesterday, Bayer had raised its all-cash offer to Monsanto shareholders from $122 to $125/share. It also offered a $1.5-billion reverse anti-trust break fee.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)