Monsanto Co, the largest seed company in the world, on Tuesday rejected the proposed acquisition of Bayer AG for $62 billion as incomplete and non-financial, but said he is open to further negotiations.

The solution to Monsanto is putting pressure on Bayer, which must decide whether to raise its offer, even as the company faces criticism from some shareholders about the fact that the purchase offer for cash in the amount of $122 for the shares is too high.

Shares of Monsanto rose 3.1% до109.3$ in new York, which is significantly below the bid price Bayer and highlights some of the investor skepticism about the possibility of a transaction. Bayer shares rose 3.23% to EUR 87,15 in Frankfurt.

The company believes in the significant benefits that an integrated strategy may provide to producers and the wider industry and respects the business Bayer, said the leadership of Monsanto.

However, the current proposal significantly undervalues the company and does not provide appropriate safeguards regarding potential financing and regulatory risks associated with the acquisition, added the user.

Bayer responded that its proposal for 122$ per share represents a full and certain value for the shareholders of Monsanto, and she hopes to engage in constructive discussions with Monsanto.

The company assured that can solve any problem on the part of regulators or funding associated with the transaction. Bayer is committed to cooperation to complete this mutually demanded a deal, management said Bayer.

It is not known at what price Monsanto will be ready to accept the proposal, but some analysts suggested that Bayer will have to pay much more than the sum of the current proposals.

JPMorgan analysts believe that the price of$ 135 per share is the more likely.

Manning & Napier Advisors LLC, an investment management firm, which is the 14th largest shareholder in Monsanto, agreed with the decision of Monsanto to achieve higher offer prices.

Source: Thomson Reuters