Bayer’s share price remains low as investors await improved Monsanto offer
Bayer’s share price remained at around its lowest level since 2013 today, suggesting investors are nervously awaiting an improved takeover offer for US seed firm Monsanto.
The drugs and chemicals giant confirmed it had made a $62bn (£42bn) takeover offer last Monday. The next day, Monsanto rejected the offer, but both firms have signalled an interest in making the deal work.
Shareholders and analysts have told City PM they expect Bayer to improve its offer, which currently stands at $122 per share.
Read more: Analysts expect improved Monsanto offer. Bayer shareholders may be unhappy
While UK-based Bayer shareholder Royal London Asset Management appears open to an improved offer, with an increase to around $135 per share expected, others seem less keen.
Markus Manns, a portfolio manager at Union Investment, has said: “Should the price level increase further, what can be expected [is that] the takeover will become less and less attractive.”
Read more: Monsanto rejects Bayer's "financially inadequate" $62bn takeover offer
On 12 May, when Bayer’s interest in Monsanto was first reported, the German company saw its share price fall five per cent to €95.15.
On 19 May, when Bayer confirmed its interest, its shares fell to €88.51.
And last Monday, when details of the bid were revealed, the price fell to €84.42, its lowest closing price since 2013.
Bayer’s share price closed at €86.44 today, up one per cent.
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