Bayer raises offer to $127.50/share for Monsanto

Bayer has again increased its bid for the purchase of Monsanto with the goal of creating a new global leader in the field of seeds and pesticides. Bayer, which has been attempting for mid-May to reach an agreement with Monsanto, has stated his willingness to pay $ 127.50 per share, a new increase in supply compared to $ 125 previously proposed. The increase leads to the Monsanto evaluation more than 65 billion dollars including debt, 56 billion excluding debt.

Last May, Bayer has advanced to Monsanto his first offer of $ 122 per share, while in July raised to $ 125. Monsanto has also granted Bayer access to its financial accounts in anticipation of a potential increase in supply on the part of German society.

Bayer Board believes that the acquisition of Monsanto, the world's largest supplier of crop seeds and genes, will create a global leader in the field of pesticides once to help farmers around the world in the production of food for a population always growing.

Analysts said that an offer that hovers between 135 and 140 dollars per share would be more than realistic. However Bayer has yet to provide any assurance regarding the achievement of an agreement with Monsanto, but also where that happens the Monsanto-Bayer agreement remains subject to regulatory approvals.

Insiders said that although the two companies were close to reaching an agreement on price, they had yet to agree on a strategy on how to deal with potential regulatory hurdles.

Meanwhile, Monsanto closed on Friday at $ 107.44, while Bayer ended at 94.24 Euro on Monday – about $ 105 – recording a decrease of about 0.7%.