The nature of acquisitions requires a company to praise the object of its desire. One hears only of the opportunities for growth, synergy, innovation and, of course, a mutually beneficial future.
German chemical giant Bayer is no exception to this rule in its attempt to takeover U.S. seed and agrochemical company Monsanto, which Chief Executive Werner Baumann wants to buy for at least €55 billion, or $62 billion.
Now that the first offer has been rejected Mr. Baumann will have to up the ante. And financing the biggest acquisition in German corporate history doesn’t seem to be an insurmountable obstacle for him, even if Bayer’s stock price has taken a considerable hit since the bold plan was announced.
Yet Bayer seems so convinced of the industrial rationale of this deal that it appears to be overshadowing all other considerations. The takeover of Monsanto is being presented to the public as practically without alternative.