Bayer Sweetens Offer For Monsanto Again; Confirms Advanced Talks

(RTTNews) - Bayer AG (BAYZF.PK, BAYRY.PK, BYR.L) confirmed advanced negotiations with U.S. seed firm Monsanto Co. (MON) and sweetened its offer again to $127.50 per share. while the key terms and conditions are yet to be agreed upon, the German conglomerate said, the higher price depends on achieving a "negotiated transaction".

In its response, Monsanto also confirmed constructive negotiations with Bayer and the revised offer. With no further comment at this time, Monsanto noted, there is no assurance that any transaction will be entered into or consummated.

"Monsanto is continuing these conversations as it evaluates this proposal, as well as proposals from other parties and other strategic alternatives to enable its Board of Directors to determine if a transaction in the best interests of its shareowners can be realized," the company said in its statement.

Bayer, which has been discussing a deal with Monsanto since mid-May, has been offering $125 per share earlier. But, the sweetened $64 billion offer was rejected by Monsanto in July, stating it as financially inadequate and insufficient to ensure deal certainty. Bayer's initial offer for Monsanto was $122 per Monsanto share.

Morgan Stanley & Co. and Ducera Partners are acting as financial advisors to Monsanto.

On Monday's trading, Monsanto gained 0.50 percent and settled at $107.44, while Bayer dropped 0.73 percent to settle at 94.24 euros.