Top Bayer Investor Comes Out in Opposition of New Monsanto Offer

Roundup Herbicide Production And Shipping Operations At A Monsanto Co. Facility As Bayer AG Continue Acquisition Quest

Boxes of Roundup weed killer bottles move along the production line at the herbicide manufacturing facility operated by Monsanto Co. in Antwerp, Belgium, on Tuesday, June 14, 2016. The next step in Bayer AG's quest to buy Monsanto and create the world's largest agricultural company is likely to hinge on whether the U.S. seed giant will agree to open its books. Photographer: Jasper Juinen/Bloomberg via Getty Images

Jasper Juinen — Bloomberg via Getty Images

A top-30 investor in German chemicals and crop pesticides firm Bayer (BAYZF) said revised terms aimed at securing a deal to buy U.S. rival Monsanto (MON) were far too generous.

The investor, who declined to be named, said Bayer’s revised $127.50 a share offer for Monsanto would represent a “heavily overpaid” takeover, if the controversial deal should proceed.

The investor is one of a number of Bayer investors to flag their opposition to the $65 billion-plus tie-up, with the strategic rationale for a deal and the valuation both called into question.

However, the investor expressed relief that the revised offer on Monday was some distance from the $135-$145 price tag some analysts had estimated Bayer could end up paying.

“That seems less likely,” the investor said in emailed comments. “Bayer would need more equity which then would need shareholder approval which would fail.”