Monsanto has knocked back Bayer’s improved takeover offer, describing it as “financially inadequate and insufficient”.
But the US seeds company said that it “remains open to continued and constructive conversations with Bayer and other parties”.
The German company improved its offer from $122 per share to $125 per share last week, moving the total value from $62bn to around $64bn.
Monsanto said in a statement: “There is no assurance that any transaction will be entered into or consummated, or on what terms.”
Following the announcement, at the time of writing, Monsanto's share price was up one per cent to $107.44, while Bayer's was down one per cent to €101.10.
The drugs and chemical giant said that, after engaging in private talks with Monsanto, it had improved its offer for $3 per share.
Bayer chief executive Werner Baumann said: “We are convinced that this transaction is the best opportunity available to provide Monsanto shareholders with highly attractive, immediate and certain value. Bayer is fully committed to pursuing this transaction.”
Bayer first made a $62bn offer for Monsanto in May. Monsanto rejected it the next day, describing the offer as “incomplete and financially inadequate”.