Monsanto Due Diligence Looms as Next Step in Bayer Deal Push

First came the initial bid, then the rejection. Now, the next step in Bayer AG’s quest to buy Monsanto Co. and create the world’s largest agricultural company is likely to hinge on whether the U.S. seed giant will agree to open its books.

Bayer made its $62 billion offer last month and Monsanto rejected the price as too low while also saying it was open to further discussions. After the rejection, Bayer sent Monsanto a letter reiterating its $122-a-share proposal and seeking due diligence, a move rebuffed by Monsanto, which is refusing to grant such access until the German company raises its offer, according to people familiar with the matter, who asked not to be identified because talks are private.