Business acquisition – Bayer and Monsanto – only a rumor, then an offer – Süddeutsche.de

When billionaire company takeovers each trick is right, both public – and secret.

A few days Bayer known before was to negotiate with the seed producer Monsanto about a takeover, had to read it in the newspapers. This may have been no coincidence. After negotiations in which boarding buyers and sellers with a low bid and then converge on the price, need time, trust and above all. Only no harassing externally

With the rumors of the share price of Bayer sagged , politicians and environmentalists intervened – and promptly let Monsanto know, consider containing 62 billion dollar offer as too low

Many who observe these negotiations are certain: Monsanto has leaked something.. spread rumors to rauszuholen as much money as possible – with such tricks the big deals are threaded. In the business with the agrochemicals, this trick also engages so well, because there are few companies in the industry. They know each other – and we know what we need to be where fall, so it does not remain secret

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In this industry, the competitors are considered extremely vigilant

Monsanto is in the production of seeds in the world’s number one; Bayer is to the Swiss Syngenta number two among suppliers of pesticides. Last summer Monsanto Syngenta had made advances – and was rebuffed. . Now there comes perhaps the Chinese competitor ChemChina to train

That of few companies in the industry are even less, makes the matter for Bayer not easier: Firstly Leverkusen must fear that, if they do not quick access, a rival Monsanto snaps. Secondly, any cartel could the deal, even if it is sealed from both, tipping over the next few months.

Although Bayer should have explored the opportunities with the lawyers in-house. A guarantee is not. In this industry, the competitors are extremely vigilant and provide the authorities in the course of their investigations advice about where it is worth a closer look, told someone who knows the business well.

Bayer is already planning a higher offer

If Bayer yield to pressure from Monsanto and yet have more jump? What a price is deemed appropriate, is not only the share price dependent, but also of the very specific benefits that a company purchases themselves – in the case of Bayer: expertise for seed, customers in North America. And also of what is happening in the industry. Given the fact that there are fewer and fewer other takeover candidates, is a supplement of 37 percent of the market value, as it already provides Bayer, not even steep, says an expert.

Bayer should at banks already financial who gives scope for a higher offer. Again, this is just a rumor. Perhaps also placed for tactical reasons. Will Bayer so send a signal? At Monsanto, in order to show how serious the group. Or to their own shareholders, to reassure them that there will be no capital increase. Or perhaps wants Monsanto to further increase the pressure? By giving the impression that there’s something to pick up.

One had to, it describes a, imagine the negotiations between the two so proud corporations as a dare among teenagers, where none stand as a coward and therefore not want to give in too soon.