Reuters reports that the American agrochemical colossus refused the current merging proposal, claiming it “significantly undervalues their company.”
Monsanto Chief Executive Hugh Grant explained that he still believes that a “marriage” between the two giant companies could be beneficial, and wants to go on with talks.
Some analysts think that Bayer’s $122-per-share bid was too low and that a $135 offer would be more reasonable, despite criticism from many shareholders. Werner Baumann, Bayer’CEO, said he was still committed to “complete this mutually compelling transaction.”
The upcoming Bayer-Monsanto tie-up already raised several debates through the United States and Europe. Monsanto’s reputation has been put to stake twice in the last few months. The first turmoil started last January when the European Patent Office has revoked their patent on genetically modified melons, further adding insult to injury to their already bad name in the agrochemical field. Lately, though, they ended up in even more fire when a large scandal about the alleged carcinogenicity of glyphosate, a chemical used in their famous herbicide Roundup, erupted.
Bayer, on the other hand, is facing its own share of controversies, such as the upcoming storm of Xarelto lawsuits filed against them by angry patients who claim they’ve suffered a great deal because of their new drug. Despite the fact that the German pharmaceutical giant wants Monsanto to abandon its name after the purchase to start over with a clean slate, the worldwide public saw this merging as a scaring alliance between evil corporations. Media and press reaction led Bayer’s share to fall by 5.6 percent to 84.47 euros, the lowest since October 2013.
