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