Monsanto rejects Bayer's $62 billion offer, but won't close the door on negotiations. The American agrochemical group said in a statement that its board of directors unanimously considers the proposal "incomplete and financially inadequate, but is open to continuing constructive discussions to understand whether a transaction that is in the best interests of the shareholders of Monsanto can be reached."
“We believe in the significant benefits that an integrated strategy can provide to farmers and society in general – added Hugh Grant, Chief Executive Officer of Monsanto – and we have always respected Bayer's business. However, the current proposal greatly understates our company and also does not adequately address or provide reassurance about some of the potential financial and regulatory risks associated with executing the transaction.
However, the US group specifies that there is no guarantee that a merger can be achieved and in what terms: "Monsanto's Board of Directors has not established a timetable for further negotiations - the note continues - and Monsanto does not intend to make further comments for the moment".
Meanwhile, after the offer, Moody's had placed Bayer's rating (A3) under examination for a possible downgrade, emphasizing that, "although the operation has rationality and strategic relevance, given the complementarity of the two companies and the sector demonstrates fundamental long-term solidity”, the Offer itself determines a substantial change in Bayer's financial policy and increases the debt/GOP leverage to 4,5 times.
