German chemicals giant Bayer revealed on Monday a US$62 billion takeover offer for US seeds and pesticides titan Monsanto, saying a deal could create a “truly global agriculture leader”.
In a conference call with reporters, Bayer’s CEO Werner Baumann labeled the potential transaction as a compelling opportunity for Monsanto shareholders, the Wall Street Journal reported.
The proposed deal includes an assumption of US$8 billion in debt.
A Monsanto spokeswoman was quoted as saying that the US firm’s board was “carefully reviewing” Bayer’s proposal.
Bayer said the US$122-a-share bid values Monsanto at 37 percent over its closing share price on May 9, the day before Bayer made a written proposal to the US firm.
Monsanto investors are said to be receptive to Bayer’s offer, but they expect the American company to seek a higher price.
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