LEVERKUSEN, Germany, July 14 (UPI) -- Nearly two months after biotechnology company Monsanto rejected a $62 billion takeover offer from Bayer AG, the German pharmaceutical company said Thursday it has upped the proposal by about $3 billion.
On July 1, Bayer offered shareholders of Missouri-based Monsanto $125 per stock share, which is $3 per share higher than its last offer in May, when Monsanto said the amount was "inadequate."
The increased offer was announced by Bayer and Monsanto Thursday.
"We are convinced that this transaction is the best opportunity available to provide Monsanto shareholders with highly attractive, immediate and certain value. Bayer is fully committed to pursuing this transaction," Bayer Chief Executive Officer Werner Baumann said.
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Bayer said it hopes the new proposal settles Monsanto's apprehension over the prior offer.
"It has comprehensively addressed Monsanto's questions concerning financing and regulatory matters and is prepared to make certain commitments to regulators, if required, to complete the proposed acquisition of Monsanto," the company said in a news release Thursday.
"The Board of Directors of Monsanto will review the proposal, in consultation with its financial and legal advisors. Monsanto will have no further comment until its Board of Directors has completed its review," Monsanto said in a statement. "There is no assurance that any transaction will be entered into or consummated, or on what terms."
Monsanto has said it is open to a corporate takeover to help resolve some financial difficulties.
""We believe in the substantial benefits an integrated strategy could provide to growers and broader society, and we have long respected Bayer's business," Monsanto Chairman and CEO Hugh Grant said in May.
"Bayer believes that its offer fully captures the intrinsic value of Monsanto, and shares the synergy benefits that the combination would create," the company said Thursday.
Bayer had said the combined company would generate synergies of $1.5 billion over three years, and said it would finance the transaction with debt and equity.
Bayer's debt doubled from 2011 to 2015 as it acquired an assortment of companies.
