Monsanto to Bayer: It’ll Take More Money Than That to Buy Us

Reuters reports that Monsanto, which has been courted by German giant Bayer, has rejected the foreign company’s first offer. That offer, at $62 billion, is 37 percent higher than Monsanto’s market cap (the value of the company as judged by its stock), but Monsanto is holding out for more.

The Wall Street Journal says, “Some Monsanto investors viewed Bayer’s offer, valuing Monsanto at $122 a share, as only the opening bid,” and quotes one source as expecting the price to come up to around $140 per share.

A Bayer-Monsanto acquisition would have to be approved by antitrust authorities in both the US, where Monsanto is based, and in the EU, Bayer’s home. That company would easily become the biggest agricultural company in the world, especially cornering the market on seeds and pesticides.

Bayer is expected to make another offer.