Bayer bids $62b in cash for Monsanto

German group moves to create world giant supplier in farm chemicals and seeds

Bayer AG said on Monday it has made an unsolicited $62 billion all-cash offer to acquire Monsanto Co and create the world's biggest supplier of farm chemicals and genetically modified seeds. It disclosed the terms of its bid amid investors' growing concern that it might overpay.

Bayer offered $122 per share in an all-cash bid in its May 10 written proposal, the Leverkusen-based company said in a statement on Monday. That's a 37 percent premium to Monsanto's May 9 closing price. The payment would be funded with a combination of debt and equity, with about 25 percent of the enterprise value coming from selling shares to existing investors. Shares of Bayer dropped to its lowest in more than 2 1/2 years.