* Bayer: Outbidding Reckitt wouldn't meet its M&A criteria
* Says to continue looking for bolt-on acquisitions
* Reckitt offered $1.4 bln, above Bayer's $1.2 bln
FRANKFURT, Nov 20 (Reuters) - German drugmaker Bayer AG gave up trying to buy Schiff Nutrition after Reckitt Benckiser made a higher offer for the U.S. vitamin maker.
"Bayer AG's Board of Management has decided not to propose any increase" to its offer, the group said in a filing with the U.S. Securities and Exchange Commission published on Tuesday.
Reckitt trumped Bayer's agreed $1.2 billion deal to buy Schiff with an offer of $1.4 billion for the U.S. vitamin maker.
"Entering a competitive bidding process in response to the November 18 Proposal (Reckitt's bid) would result in a price outside Bayer's set financial criteria," the filing said.
Bayer plans to continue its strategy to augment organic growth with strategic bolt-on acquisitions, it added.