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Monsanto Allowing Bayer Limited Access to its Books

Dan General, Industry News Release

Monsanto has allowed Bayer AG a glimpse into the St. Louis, Missouri-based seed company’s books amid ongoing merger talks. Sources familiar with the talks told Reuters this week Monsanto and Bayer have yet to sign a non-disclosure agreement, but Monsanto has granted Bayer a “limited drip of information.” A non-disclosure agreement would allow Bayer to conduct due diligence on Monsanto in reconsidering its offer to acquire the company. The sources also say Bayer has no appetite to put a deal at risk by going hostile, although added talks were “difficult.” Monsanto CEO Hugh Grant told investors this week that Monsanto remains in discussions with Bayer and other parties about “potential strategic transactions.” Monsanto has rejected two potential bids from Bayer thus far, the latest being worth $64 billion.

From the National Association of Farm Broadcasting news service.

From: Reuters

Monsanto gives Bayer limited access to its books: sources

U.S. seed company Monsanto has given German suitor Bayer AG limited access to its books after turning down a sweetened $64 billion takeover offer last month, two sources familiar with the situation told Reuters.

The parties have not yet signed a non-disclosure agreement, which would allow Bayer to conduct due diligence, but Monsanto is giving the company a limited drip of information, the sources said.

They said Bayer had no appetite to put a deal at risk by going hostile, although talks were “difficult.” The sources requested anonymity because they were not authorized to talk about the matter.

Bayer declined to comment about the development.

Monsanto remains in talks with Bayer and other parties about potential strategic transactions, Chief Executive Officer Hugh Grant told investors gathered at a two-day event in St. Louis on Wednesday. He said the company would not comment further on M&A action and the discussions with Bayer during the event.

The seed and agrochemical industry, long dominated by a handful of big companies, has been jolted by several large deals in the past year as low crop prices and belt-tightening by farmers pressured earnings.

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