Bayer and Monsanto edge closer to takeover deal

Negotiations between Bayer AG and Monsanto Co. are advancing toward a deal after the companies made progress on issues including the purchase price and termination fee, people familiar with the matter said.

Bayer Chief Executive Officer Werner Baumann and his U.S. counterpart Hugh Grant have had a series of constructive meetings in recent weeks, said the people, who asked not to be identified because the discussions are private. The companies, in talks to create the world’s largest producer of seeds and pesticides, could reach an agreement in the next two weeks, said the people, who cautioned that negotiations could still fall apart or be delayed.

Baumann, who became CEO in May after more than 20 years with Bayer, remains convinced of the rationale of the combination and is intent on getting the deal done despite initial disagreements with Monsanto over the price, people familiar with the matter had said.

Monsanto may be willing to come to the table for $130 a share, Argus Research analyst Bill Selesky said in June. Analysts at Sanford C. Bernstein said the company may decide to sell if Bayer raises its offer to $135 a share.

The German company’s promise to pay Monsanto $1.5 billion if the deal doesn’t pass muster with regulators may also not be enough, analysts, including Jeffrey Zekauskas of JPMorgan Chase & Co., have said.

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