Today Bayer (BAYZF) made an offer to buy U.S. seed maker Monsanto (MON) for $62 billion in an all cash transaction. Bayer is a pharmaceutical and crop company, and it wants to add to its business by buying Monsanto’s seeds. After this offer was announced Monsanto traded up to $105.66 per share or up by 4.40%. 

This is below the actual offer price made by Bayer of $122 per share. The reason why Monsanto traded lower than the actual offer price is because investors are skeptical of the deal. They don’t believe that Monsanto shareholders will be willing to sell with the current offer on the table. The offer was first sent to Monsanto on May 10, and the company noted that it would review the offer. 

Monsanto analysts believe that the offer is quite low, and indicate that Bayer may have to pony up more money if it expects to walk away with the company. And some Bayer shareholders  feel that Bayer is offering way too much to buy Monsanto as it is.

If the deal goes through it will be the largest all cash offer on record. 

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