It called the Bayer offer “incomplete and financially inadequate” but said it was ready to engage in “constructive conversations” to assess whether an acquisition by the German conglomerate would be in the best interests of Monsanto shareholders.
However, the seed company said it could see the benefits in an integrating the two businesses.
Reacting, Bayer said its $122 per share all-cash proposal provides “full and certain value” for the shareholders of the US seed company.
Werner Baumann, CEO of Bayer, said the group was confident it can “address any potential financing or regulatory matters” related to the Monsanto deal.
Confirming the initial offer to buy the controversial company, on 23 May, Bayer said farmers in Asia Pacific, North America and Europe would benefit from the broad product portfolio and the deep R&D pipeline.
Low crop prices globally for the past three years have been forcing farmers to scale back on spending, and the challenging market conditions have been encouraging consolidation on the seed and pesticide business side.
December saw DuPont and Dow Chemical merge and early this year Monsanto tried to engage Syngenta in renewed discussions on combining the two companies.
Meanwhile, ChemChina, just extended its tender offer for shares of Switzerland headquartered, Syngenta, to 18 July as it awaits regulatory approval of its planned acquisition valued at $43bn.
The deal, revealed in February this year, has to undergo evaluation by competition authorities in the EU and the US. The US Department of Agriculture (USDA) is reportedly joining the US state panel set up to scrutinize the implications of such a takeover.