Monsanto says Bayer's buyout bid is too cheap, but is willing to keep talking

Monsanto Co. said Tuesday its board of directors have rejected Bayer AG's buyout bid, calling it "incomplete and financially inadequate." The maker of agrochemicals, seeds and genetically modified crops said that it was open to continued talks with its German rival to assess whether a deal would be favorable to its shareholders. "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 Monsanto Chief Executive Hugh Grant. "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." On Monday, Bayer said it would pay $62 billion in cash to buy Monsanto. The stock was up 1.6% prior to a trading halt for news. It has run up 9.3% year to date, while the S&P 500 has gained 1.6%.

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