Bayer bid for Monsanto last week.
Monsanto has announced that its board of directors unanimously views the Bayer AG proposal as "incomplete and financially inadequate, but is open to continued and constructive conversations to assess whether a transaction in the best interest of Monsanto shareowners can be achieved".
Monsanto chairman and chief executive officer Hugh Grant said: "We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer’s business. 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."
Monsanto added that there is no assurance that any transaction will be entered into or consummated, or on what terms. The Monsanto Board of Directors has not set a timeline for further discussions.
Morgan Stanley & Co. and Ducera Partners are acting as financial advisors, and Wachtell, Lipton, Rosen & Katz is acting as legal advisor, to Monsanto.