Tuesday, September 6, 2016

Bayer improves offer for Monsanto in final stretch of negotiations – Reuters Spain

By Ludwig Burger and Greg Roumeliotis

(Reuters) – German drugmaker Bayer AG said Monday that its negotiations with Monsanto Co had moved and was now ready to offer more than 65,000 million dollars to acquire the largest seed company in the world .

The announcement of Bayer comes at a time the gap in price expectations of the acquisition between the two companies has been significantly reduced, but still needs to agree on important issues such as the possible potential divestitures to address possible obstacles to competition regulators.

In a statement, the German company said it was ready to offer 127 , $ 50 per share as part of a negotiated agreement, above its previous offer of $ 125 per share. The statement confirmed a report published Monday by the German newspaper Rheinische Post.

Rheinische Post also said, citing unidentified sources, that an offer 130 dollars per share may be sufficient to close a deal with Monsanto “in a quick and friendly manner”.

In a brief statement, Monsanto said on Monday it had participated in negotiations “constructive” with Bayer in which he received the new proposal nonbinding acquisition of $ 127.50 in cash.

the company based in San Luis added that continued in these talks, while evaluating Bayer’s offer, as well as proposals for other parties not named. He warned that there was no certainty that an agreement occurred.

The supply of Bayer was already the largest proposed acquisition to 100 100 cash in recorded history. An agreement with Monsanto would give the German company a chance to become the world leader in the industry of agricultural supplies, which is experiencing a phase of rapid consolidation.

© Thomson Reuters 2016 All rights reserved.

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