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Bayer's new bid for Monsanto likely will be rejected, analysts say

Even though German chemical and drug company Bayer has sweetened the pot in its attempt to win seed giant Monsanto, analysts suggest the U.S. company's board is likely to reject the roughly $65 billion offer and could pursue other transactions such as combining with BASF's agro-chemicals unit.

On Thursday, Monsanto acknowledged that it received a revised, non-binding proposal from Bayer, and the St. Louis-based company said its board would "review the proposal, in consultation with its financial and legal advisors."

Monsanto declined comment on a Bloomberg report that the world's largest seed company is exploring the purchase of BASF's ag-solutions business as an alternative transaction.

"By engaging in conversations with BASF, the message to Bayer is you either have to give us a better price or we may consider doing something with BASF, " said Chris Kapsch, an analyst at BB&T Capital Markets. "I don't think they believe selling for $125 (per share) today...