May 24, 2016Monsanto rejects Bayer’s $62 billion proposal
Monsanto‘s Board of Directors has unanimously viewed the Bayer proposal as incomplete and financially inadequate. The company, however, is open to continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved, Monsanto said in a news release.
We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” said Hugh Grant, Monsanto chairman and CEO. “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.”
There is no assurance that any transaction will be entered into or consummated, or on what terms, the company said. The Monsanto Board of Directors has not set a timeline for further discussions and Monsanto does not intend to make further comment at this time.
Morgan Stanley & Co. and Ducera Partners are acting as financial advisors, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor, to Monsanto.
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