spin-off

Bayer AG Conducting Due Diligence on Monsanto

Dan General

Bayer AG
Bayer AG is examining all points of Monsanto, including financial accounts, in its effort to acquire the St Louis, Missouri-based company. Bloomberg reports the move could pave the way for the German company to raise its takeover offer for Monsanto. Bayer has signed confidentiality agreements to conduct due diligence on Monsanto, a process that is expected to last a few more weeks. Last month, Monsanto rejected an improved $125-per-share offer by Bayer, describing it as financially inadequate. In a statement, Monsanto said the company remained open to conversations, but never indicated a willingness to allow Bayer to conduct due diligence. Bayer requested the move previously as a prerequisite to increasing its offer. Buying Monsanto would give Bayer the largest seed supplier and a pioneer of crop biotechnology, and create the world’s largest producer of seeds and pesticides.

From the National Association of Farm Broadcasting news service.