Monsanto rejects Bayer offer

Monsanto Co. has rejected Bayer's $55 billion takeover offer, leaving the German chemical giant to decide whether to raise its bid a second time time in its quest to create the world's largest producer of seeds and pesticides.

Monsanto said in a statement Tuesday that while the bid was 'financially inadequate,” the company is open to further talks with Bayer and other parties about a deal.

It's the second time Bayer has been rebuffed by Monsanto, which rejected a $122-a-share offer in May. Bayer had sought to gain access to internal Monsanto data with a higher bid, and last week raised its proposal to $125 a share.

'Bayer's faced with the question, how much will it cost to get a peek at Monsanto's books,” said Jason Miner, a Bloomberg Intelligence analyst. Bayer has the financing available to raise its offer to about $158 a share, he said.

Buying St. Louis-based Monsanto would give Bayer the largest seed supplier and a pioneer of crop biotechnology. The kind of genetically modified seeds Monsanto started to commercialize two decades ago now account for the majority of corn and soybeans grown in the United States. Monsanto also sells seeds in foreign markets including Latin America and India.

A spokesman for Bayer said the company is examining Monsanto's response and declined to give further comment.