May 25, 2016 / 5:00 PM / 3 years ago

Royal London says backs Bayer-Monsanto deal if priced at $130-$135 per share

The logo of Bayer AG is pictured at the Bayer Healthcare subgroup production plant in Wuppertal February 24, 2014. REUTERS/Ina Fassbender/File Photo

LONDON (Reuters) - Bayer (BAYGn.DE) shareholder Royal London Asset Management said on Wednesday that the German company’s bid for U.S. rival Monsanto MON.N made sense strategically and that it would support a deal if it was priced at around $130-$135 a share.

RLAM fund manager Andrea Williams said she would not, however, like the board of Bayer to offer as much as $150 a share.

Given other deals ongoing in the sector, there was no other obvious buyer for Monsanto, she said in emailed comments to Reuters. “(I) don’t think a Chinese player would be allowed to take Monsanto over so (Bayer) don’t need to stretch the price,” Williams said.

Monsanto on Tuesday rejected Bayer’s initial $122 a share bid, describing it as “incomplete and financially inadequate”, but said it was open to further talks.

Reporting by Simon Jessop and Carolyn Cohn; Editing by Rachel Armstrong

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