Monsanto Says Bayer's $62 Bln Offer 'financially Inadequate', But Open To Talks

(RTTNews) - Monsanto Co. (MON) said Tuesday that its board views the Bayer AG (BAYZF.PK, BAYRY.PK, BYR.L) proposal as incomplete and financially inadequate, but is open to continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved.

Responding to Monsanto's Views on the Proposal, Bayer said it is confident that it can address any potential financing or regulatory matters related to the transaction. Bayer remains committed to working together to complete this mutually compelling transaction.

"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," said Hugh Grant, Monsanto Chairman and CEO.

Monsanto noted that it has not set a timeline for further discussions and it does not intend to make further comment at this time. There is no assurance that any transaction will be entered into or consummated, or on what terms.

Bayer announced that it looks forward to engaging in constructive discussions with Monsanto regarding the proposed transaction. Bayer reiterated that its $122 per share all-cash proposal provides full and certain value for Monsanto shareholders.

"We are pleased that Monsanto's Board shares our belief in the substantial benefits an integrated strategy could provide to growers and broader society. We are confident that we can address any potential financing or regulatory matters related to the transaction. Bayer remains committed to working together to complete this mutually compelling transaction," said Werner Baumann, CEO of Bayer AG.

On Monday, German conglomerate Bayer said it made an all-cash offer to acquire Agricultural products giant Monsanto for $122 per share or an aggregate value of $62 billion.

MON closed Tuesday's regular trading at $109.30, up $3.30 or 3.11 percent. In the after-hours, the stock gained $2.01 or 1.84 percent.