German drugs and chemicals group Bayer AG said it had made an offer to buy U.S. seeds company Monsanto Co for $122 per share in cash, or a total value of $62 billion (€55 billion), to create the world's biggest agricultural supplier.

Bayer said today that the offer represented a 37 percent premium over the closing price of Monsanto shares on May 9, before rumours of a planned bid emerged.

Monsanto had disclosed last week that Bayer had made an unsolicited takeover offer for the group, triggering an investor backlash in which one of the German pesticides and drugs company's major shareholders called the move "arrogant empire-building".

Bayer's offer values Monsanto at 15.8 times its 12-month earnings before interest, tax, depreciation and amortisation (EBITDA) as of Feb. 29.

Bayer said it planned to finance the deal with a combination of debt and equity, which would include a rights offering.

It expects annual earnings contributions from synergies of around $1.5 billion after three years, plus additional future benefits from integrated offerings.

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