Monsanto Views Bayer’s Current Proposal as Incomplete and Financially Inadequate

A follow up to share Monsanto’s public response to Bayer AG’s unsolicited proposal to acquire Monsanto for $122 per share in cash. Monsanto believes that Bayer’s current proposal is “incomplete and financially inadequate but is open to discussing a potential path forward that would create appropriate value for MON shareholders.

The price currently undervalues Monsanto and its future growth prospects. Additionally, it doesn’t take into consideration several additional factors, which include:  its leading position in seeds & traits, unparalleled data science platform and robust R&D pipeline, contributing to the scale and efficiency to unlock yield for farmers. These, coupled with the Company’s financial discipline, allow Monsanto to be best positioned to capitalize on the agriculture cycle as it rebounds, the company believes – bellow is the press release.

Monsanto –  Views Bayer’s Current Proposal as Incomplete and Financially Inadequate; Company Open to Discussing Potential Path Forward That Would Create Appropriate Value for Monsanto Shareowners

Tuesday May 24, 2016

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business”

  • LOUIS–(BUSINESS WIRE)–Monsanto Company (NYSE: MON) today announced that its Board of Directors unanimously views the Bayer AG proposal as incomplete and financially inadequate, but is open to continued and constructive conversations to assess whether a transaction in the best interest of MON shareowners can be achieved.

“We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business,” said Hugh Grant, MON Chairman and CEO. “However, the current proposal significantly undervalues our company and also does not adequately address or provide reassurance for some of the potential financing and regulatory execution risks related to the acquisition.”

There is no assurance that any transaction will be entered into or consummated, or on what terms. The MON Board of Directors has not set a timeline for further discussions and Monsanto does not intend to make further comment at this time.

Morgan Stanley & Co. and Ducera Partners are acting as financial advisors, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor, to MON.



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