Monsanto Abandons Takeover Bid for Swiss Rival Syngenta

( Monday ) has made an increased takeover offer to Syngenta AG ( SYT ), seeking to draw the Swiss pesticide producer to the negotiating table after its earlier approach was rejected, Bloomberg reported citing people familiar with the matter.

Bloomberg cited people familiar with the matter as saying that Monsanto, which is looking to combine its seeds business with Syngenta’s seeds and pesticides business, raised its offer to CHF470 per share from CHF449.

Monsanto’s sweetened offer is primarily comprised of an increase to the cash portion of its cash and stock proposal, the person added.

Some top investors were driving Syngenta seek an improved offer and to sit down with Monsanto.

The new offer also includes an increase in the break-up fee to US$3 billion from US$2 billion if the transaction is blocked by regulators or falls apart for other reasons, the person said.

Syngenta rejected Monsanto’s sighting shot of SFr. In May the Swiss company declined a proposal from Monsanto to acquire the company at a price of 449 Swiss Francs per Syngenta share with approximately 45% in cash.

A profitable deal would flip Monsanto, led by chief government Hugh Grant, into the most important global producer of each seeds and crop chemical compounds, .

As grain prices stay soft its stock price has dropped nearly 20% before three months and a solid dollar hampers US grain exports. Early Wednesday, shares of both companies were halted due to news pending.

So far the Basel-based company has refused to negotiate with Monsanto, arguing that it has stronger prospects on its own and that a cost-cutting reorganisation is just starting to bear fruit.

“What element of no do not they understand?” However, the deal could face challenges that are regulatory in america, Brazil, China and elsewhere, creating hurdles that may delay or force major concessions to the offer, should it go forward.