Report: Monsanto Board Close To Approving Sale To Bayer

Image courtesy of Jeanette E. Spaghetti

The third time could indeed be the charm with regard to Bayer’s pursuit of Monsanto with the Missouri-based seed company’s board reportedly meeting this week to discuss the $65 billion takeover bid that would create the world’s largest seed company.

Reuters, citing sources close to the matter, reports that Monsanto’s board is close to accepting the bid, but at a slightly higher valuation than the $127.50/share option currently on the table.

Still, the final agreement is expected to be less than the $130/share figure Monsanto had been holding out for.

Sources, which caution that a deal could still fall apart, say that Bayer was able to obtain more financial information about Monsanto after it made the $65 billion bid last week.

That information assisted the company in making more detailed negotiations.

“Given recent updates on the Monsanto approach suggest a final conclusion may be close, we suspect (Bayer) will work hard to try and reach a final conclusion before” next week, analysts tell Reuters.

The current offer on the table represents a 2% increase over Bayer’s previous bid of $125 per share shot down by Monsanto in July.

It’s also about 4.5% higher than Bayer’s initial offer in May of $122 per share, which Monsanto deemed “financially inadequate.”

Exclusive: Monsanto board close to giving nod to Bayer deal on Tuesday – sources [Reuters]