Monsanto to reject Bayer bid, seek higher price: Sources

The Monsanto logo at the firm's manufacturing site and operations centre at in Lillo near Antwerp, on May 24, 2016.
The Monsanto logo at the firm's manufacturing site and operations centre at in Lillo near Antwerp, on May 24, 2016.PHOTO: AFP

NEW YORK (REUTERS) - Monsanto Co will reject Bayer's US$62 billion (S$85.5 billion) acquisition bid and seek a higher price, two people familiar with the matter said on Tuesday.

While Monsanto sees industrial logic in a combination with Bayer and believes a deal would be approved by antitrust and other regulators, the company also has confidence in its standalone plan and believes shareholders deserve a better offer, the people said. They asked not to be identified because the deliberations are confidential.

The German drugs and crop chemicals group said on Monday it offered Monsanto US$122 per share. It was not clear what price Monsanto would be willing to sell for.

Monsanto and Bayer representatives did not immediately respond to requests for comment.