NEW YORK (TheStreet) -- Shares of Monsanto (MON) are advancing by 2.18% to $108.31 on heavy trading volume late Tuesday morning, as the company will reject Bayer's (BAYRY) $62 billion takeover offer and seek a higher price, sources told Reuters.
The St. Louis-based company sees industrial logic in combining with Bayer and believes it will win approval from regulators, the sources said.
But, Monsanto also has confidence in its standalone plan and believes shareholders deserve a better offer, the sources added.
Yesterday, Leverkusen, Germany-based Bayer said it would offer $122 per share for the company.
It was unclear what price Monsanto would be willing to sell for, Reuters said.
About 5.83 million of Monsanto's shares were traded so far today vs. its average volume of 4.3 million shares per day.
Separately, TheStreet Ratings Team has a "Buy" rating with a score of B on Monsanto stock.
The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity.
The team believes its strengths outweigh the fact that the company has had lackluster performance in the stock itself.
Recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
You can view the full analysis from the report here: MON