Why Bayer’s Deal to Buy Monsanto Makes No Sense

After months of negotiating and three raised buyout offers, Bayer AG finally won the prize it had been seeking: Monsanto. However, the positive aspects of the tale end there. Not only do shares of Monsanto currently trade at a 18.75% discount to the offer price of $128 per share -- implying little faith on Wall Street that the deal will, in fact, close -- but the rationale for the merger itself is also questionable at best. Here’s why.

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