Bayer Launches $7 Billion Cash Call To Fund Monsanto Deal
Source: Reuters
Bayer (BAYGn.DE) launched a 6 billion euros ($7 billion) rights issue on Sunday, a cornerstone of the financing package for its planned $62.5 billion takeover of seeds maker Monsanto (MON.N).
Bayer last week won U.S. approval for the Monsanto takeover, clearing a major hurdle for a deal that will create by far the largest seeds and pesticides maker.
The cash call is smaller than initially envisaged by Bayer because Monsanto reduced its debt while the antitrust review dragged on.
Also, Bayer raised 4.5 billion euros more from selling down its stake in plastics maker Covestro (1COV.DE) than initially expected.
The German drug maker also grossed 7.6 billion euros in proceeds from selling assets to BASF (BASFn.DE), as the antitrust reviews were stricter than anticipated, but that did not cut the need to raise money via a share issue because future cash flows to service debts would also be lower.
Bayer is set to close the transaction on June 7, according to a media report on Sunday.
Bayer will create an agricultural supplies giant with sales of about 20 billion euros, based on 2017 figures, when taking into account the divestments...Cont..
Read more: https://www.msn.com/en-us/money/companies/bayer-launches-dollar7-billion-cash-call-to-fund-monsanto-deal/ar-AAyaP7E
= new reply since forum marked as read
Yeah right. Sure. 
