Deals
Monsanto Trading Below Bayer Offer Shows Regulatory Anxiety
- Shares closed 13% below offer amid uncertainty about approvals
- Monsanto CEO says Bayer going public with bid is ‘surprising’
Why Investors Aren't Convinced on Bayer, Monsanto Deal
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Monsanto Co. shares closed 13 percent below Bayer AG’s all-cash offer on Monday amid concern that regulators may complicate the proposed $62 billion takeover that would create the world’s largest seed and crop-chemicals company.
The deal also drew a pledge from U.S. senators to pay it close scrutiny amid accelerating consolidation in the industry. Monsanto closed at $106 in New York trading on Monday, up 4.4 percent for the day but lower than Bayer’s $122 bid. That’s partly because of an assumption that there could be “regulatory hiccups," Chris Shaw, an analyst at Monness Crespi Hardt & Co., said in a note.