Monsanto bidder Bayer to discuss possible improved offer and hostile bid options at 14 September board meeting
The supervisory board of Bayer [ETR:BAYN], a German pharmaceuticals and chemicals group, is due to meet on 14 September to discuss the proposed takeover of St Louis, Missouri-based seeds company Monsanto Company [NYSE:MON], Rheinische Post reported.
The German daily cited unnamed company sources that said the board will discuss a possible increased bid and a hostile takeover. Bayer has called an investor and analyst conference to be held in Cologne on 20 September, the report stated.
A Bayer spokesperson said the group does not comment on the timing and content of supervisory board meetings.
The report noted comment by one analyst who said Bayer could start a hostile bid with the hope that the Monsanto management would reconsider and reach an amicable deal, while another analyst said Bayer could go as high as USD 135 per share before it would become too expensive and risky.
Google Translation
Bayer Supervisory Board advises new listing for Monsanto
Leverkusen. In the bidding war the American seed company Monsanto is moving. On September 14, the Bayer Supervisory Board will discuss the status of negotiations and the further steps. Antje Höning
The learned from our editorial group circles. It should also be discussed about a possible higher offer and the possibility of a hostile takeover. For September 20, the Group held an investor and analyst meeting in Cologne. "Bayer expressed neither dates nor content of the Supervisory Board sessions," a Bayer spokesman.
The Leverkusen had submitted an initial offer for the controversial Genetic Engineering Group on May 23 and offered $ 122 per share Monsanto. The rejected Monsanto CEO Hugh Grant as well as too low from how on July 14 rose to $ 125 range. The merger of Bayer Crop Science division, which has its headquarters in Monheim, and Monsanto would with a turnover of 62 billion received largest agrochemical company in the world arise.
Informally follows talks in recent weeks continue
Markus Manns from Volksbanken fund Union Investment holds both for feasible - a higher offer and the threat of a hostile takeover, even if that was not previously Bayer style. "Bayer could make a hostile takeover bid start in the hope that the Monsanto management pivoted around and you just go to a common friendly solution," said the manager of our editors. For this, the Bayer AG could try to exert pressure by making direct approach to the Monsanto shareholders and tried this, the Monsanto board exchange part. Also conceivable is a higher offer. "Bayer has also the price is still room for improvement: Up to 135 dollars per share Bayer can go, then it will be too expensive and risky," said Mann. Therefore it is important that Bayer as the next step, get insight into the Monsanto-books.
Informal talks between the Germans and Americans in recent weeks have already gone further. Even Bayer CEO Werner Baumann and Bayer supervisory board chairman Werner Wenning were common in the US, in order to inspire the Monsanto management for the deal, as is stated in the consolidated circles continue. The aim was to put a powerful signal that the board fully stand behind the plans of the Office had come in May Board bosses.
In the Group and Supervisory you know that Bayer's pipeline of pharmaceutical innovations is not too full. If the current box office hits such as Xarelto lose patent protection, sight comes to nothing like it. Simultaneously Bayer is a global scale as a pharmaceutical company too small to be protected against a takeover. With Monsanto could make the agrochemical business to strong second leg against. Therefore, one is willing to the disadvantages of the merger - Monsanto has a bad reputation as Genpflanzen- and glyphosate manufacturers - to be accepted.