group FRANKFURT German drugs and chemicals Bayer offered to buy the giant American seed Monsanto for 62 billion dollars in cash, defying criticism from some of its shareholders in an effort to become a leader of an agricultural industry rapidly consolidating.
the unsolicited offer, which includes debt would be largest foreign acquisition by a German company should be accepted.
the operation, which follows a planned merger between agricultural units Dow Chemical DuPont , is given three weeks after Werner Baumann took over as chief executive of Bayer, and was rated by a major shareholder as the ‘construction of an arrogant empire’ when they met last week.
Bayer said Monday it would offer 122 dollars per share, representing a premium of 37 percent over the closing price of the shares of Monsanto before the emergence of rumors of a deal.
“We expect a completely positive response directory Monsanto,” Baumann told reporters in a conference call, describing criticism from some investors as “an ignorant reaction in the media” driven by the element of surprise.
Monsanto , which said last week that Bayer made an unsolicited takeover proposal by the group but gave no details, has not yet commented on the offer. The shares of the US company rose 9.5 percent to $ 111.17 in premarket trading.
Baumann made the proposal at a time when the global agrochemical industry is consolidating, in partly in response to falling prices of raw materials which affected farm incomes and also by the increasing convergence between markets seeds and pesticides.
ChemChina shopping the Swiss Syngenta for 43 billion dollars after the latter rejected an offer from Monsanto, while Dow and DuPont are forging business of 130 billion dollars.
Meanwhile, the German chemical group BASF is also exploring an alliance with Monsanto but is unlikely to present a counteroffer, according to sources close to the operation. BASF declined to comment Monday.
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