WASHINGTON”•The German pharmaceutical and chemicals group Bayer on Monday said it would sweeten its offer for US rival Monsanto.
In a statement released late Monday, Bayer said it would raise its offer for the US seed giant to $127.50 per share from $125. That would bring the deal’s total value to almost $66 billion including debt.
Monsanto confirmed Bayer’s improved bid for a friendly takeover and said it was evaluating the proposal, “as well as proposals from other parties and other strategic alternatives.”
It said there was no guarantee a deal would be struck.
Monsanto rejected Bayer’s previous offer in mid-July, saying it was “financially inadequate,” but left the door open to further discussions.
With its new offer, Bayer also said it has no intention of carrying out a hostile takeover.
The German daily Handelsblatt reported in mid-August that Bayer was considering a hostile bid if faced with ongoing opposition from Monsanto.
A deal would create a global leader in genetically modified seeds and pesticides.
Monsanto pursued its own takeover of Swiss Syngenta for more than a year as well as BASF SE’s agrochemicals unit, Bloomberg reported.
Germany’s BASF could still play the role of white knight helping Monsanto fend off Bayer’s bid, Bloomberg said in mid-July.
Bayer was down 0.20 percent in early trade on the Frankfurt stock exchange Tuesday.
State-owned China National Chemical Corp., meanwhile, said Tuesday it was extending its $43 billion agreed takeover for Swiss pesticide and seed giant Syngenta until November.