The short fall of the Bayer stock: The investors are shell-shocked after a conviction is too high damages in connection with a glyphosate-containing weed killer in the new US subsidiary of Monsanto.
Steep downhill it went on Monday for the shares of Bayer, they lost about eleven percent and were by far the biggest losers in the Dax. The chemical and pharmaceutical group, was sentenced in the USA to a damages payment of $ 289 million in connection with a glyphosate-containing herbicides to the daughter of Monsanto. Traders now fear that this is only the beginning of a whole wave of compensation claims, because Monsanto faces still around 5,000 similar suits.
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On Bayer so the cost could be astronomical, even if not easy to 289 million dollars with 5000 multiply. At the moment, the future loads are not yet in sight, and the dispute is not yet completed. Monsanto has announced an appeal.
“Massive Uncertainty”
“This provides for massive uncertainty,” commented a trader to the judgment. “It’s not so much the sum that must be paid, but more so that now even a lot more lawsuits are expected.”
The verdict had been expected with great excitement, because since years there is a squabble over whether Monsanto produced the weed killer are carcinogenic or not. Monsanto and Bayer, refer to “more than 800 scientific studies, the U.S. EPA, the National institutes of Health, and overseer of the world” had come to the conclusion that glyphosate is safe and it causes no cancer.
The statement of the International cancer research Agency of the world health organization (WHO), which classified the weed killer in 2015 as “probably carcinogenic” for humans, however.
More lawsuits are expected to follow
One could argue about the rights and wrongs of such a judgment, it can do a physical and likely long-term uncertainty for the chemical and pharmaceutical group, argued shares-Analyst Michael Leacock from the German financial services provider, main first. Undoubtedly, over time, more lawsuits are likely to follow.
Observers of the British investment Bank HSBC recommend investors continue to hold on to the shares. A compensation of almost $ 300 million because of the weed ester Roundup destroy only shortly after the Monsanto Takeover move the purchase from the time in not a good light, wrote Analyst Stephen McGarry. For the time being, investors need not react to, but the uncertainty is likely to increase. Obviously his advice is not followed currently.
ul/tko (dpa, rtr, ard.boerse.de)