European stocks dropped Monday, opening the week with shares of Germany’s Bayer AG falling after bidding for chemicals heavyweight Monsanto Co.
The Stoxx Europe 600 fell 0.6% to 335.98, giving back a portion of Friday’s 1.2% rise that locked in a second straight weekly gain for the pan-European index.
Shares of Bayer AG dropped 3.2% after the drug and chemicals maker said it made an all-cash offer to buy Monsanto Co for $62 billion, or $122 a share. The bid values Monsanto at 37% over the company’s May 9 closing share price, the day before it made a written proposal to the U.S. company, said Bayer.
Shares of Fiat Chrysler Automobiles NV were down 5% after a report by German newspaper Bild that German regulators suspect the auto maker of using illegal software to cheat on emissions tests. Fiat last week declined to meet with regulators to discuss the issue.
On a broader scale, investors will look for the first reading of the eurozone purchasing managers’ index for May, for both services and manufacturing. The data is scheduled for release at 9 a.m. London time, or 4 a.m. Eastern Time.
The flash reading on Germany’s composite PMI for May showed a rise to 54.7, a five-month high. The preliminary manufacturing PMI for May was up to 52.4, also a five-month high, beating a 52 forecast from FactSet. The services PMI was up to 55.2, a three-month high and topping estimates of a 54.6 reading.
Indexes: In Frankfurt, Germany’s DAX 30 fell 0.8% to 9,839.37, and Italy’s FTSE MIB was down 2.8% to 17,313.35.
France’s CAC 40 dropped 1% to 4,311.90, and the U.K’s FTSE 100 lost 0.4% to 6,133.17.
The euro was up 0.1% at $1.1234.