Bayer Said to Be Exploring Takeover Bid for Monsanto

Corn, Soybeans Decline As Favorable Weather May Boost U.S. Crops

Farmers Matt Wiggeim, right, and Cody Gibson mix Monsanto Co.'s Roundup herbicide near a corn field in Kasbeer, Illinois, U.S., on Monday, June 13, 2011. Corn fell to a one-month low and soybeans declined on speculation that favorable weather will boost yields in the U.S., the world's biggest grower and exporter. Photographer: Daniel Acker/Bloomberg via Getty Images

Photograph by Daniel Acker — Bloomberg via Getty Images

Germany’s Bayer AG (BAYER-AG) is exploring a bid for U.S. seed company Monsanto Co (MON), Bloomberg reported, citing people familiar with the matter.

Monsanto lost out to ChemChina in its bid to buy seeds and pesticides firm Syngenta last year.

State-owned ChemChina’s deal for Syngenta and a merger between DuPont and Dow Chemical has dramatically changed the agricultural landscape in a matter of months.

Monsanto share’s were up 17.7 percent at $106.30 in premarket trading on Thursday.

Bayer has discussed how to finance a deal including potential asset sales, Bloomberg reported.

No final decision has been made and Bayer could decide against a bid or pursue other transactions with Monsanto, including joint ventures or asset sales, Bloomberg quoted the people as saying.

Monsanto, which had a market value of about $40 billion as of Wednesday close, declined to comment.

Bayer also declined to comment.

Street Insider, citing sources, reported late on Wednesday that Germany’s BASF SE was considering a bid for Monsanto.