German pharmaceutical giant Bayer on Thursday raised its takeover offer for US seed and agrochemical company Monsanto to 125 dollars per share, up from 122 dollars per share.
The US firm had previously rejected a 62-billion-dollar proffer from Bayer that would have created the world's largest provider of pesticides and crop seeds.
Monsanto's board of directors said at the time that Bayer's bid was "incomplete and financially inadequate."
Monsanto said it would review the new offer before making any statements.
Bayer said its higher bid was made possible after it received additional information in confidential talks with Monsanto.
"We are convinced that this transaction is a highly attractive one for Monsanto shareholders and offers the best opportunity for an immediate and certain rise in share value," Bayer chief Werner Baumann said.
The German firm said it was determined to complete the deal.