Monsanto will reject the 62 billion dollar bid from Bayer and seek a higher price.
Monsanto company officials say they believe a deal with the German-based Bayer could get antitrust and regulatory approval.
That means a deal is not out of the question. However, the Monsanto Board of Directors says the current offer is incomplete and financially inadequate.
Bayer will have to decide if it wants to raise its bid in the face of shareholder criticism that the $122 per-share price tag is already too high.
Other options for Bayer include walking away from the deal or mounting a hostile takeover bid.
Bayer says it would finance the bid with a combination of debt and equity.
The Monsanto Board of Directors has not set a timeline for further discussion with Bayer.
Global agrochemical companies are trying to consolidate, in part, due to lower commodity prices.
Seed and pesticide markets are also increasingly converging.
