Bayer close to picking financing banks for Monsanto bid: sources

London

BAYER AG is close to choosing banks to arrange funds for its proposed acquisition of Monsanto Co, according to people familiar with the matter, after the US company rejected the initial US$62 billion bid as too low and sought reassurances on the potential financing.

Bayer will probably raise more than US$40 billion in short-term bridge financing and most of the remainder in term loans, said the people, who asked not to be identified because the talks are private.