The stock is in the basement, in the U.S., billion, a cost that is threatened by court rulings. Bayer chief Baumann had to listen to it by the shareholders at the annual General meeting harsh criticism.
Werner Baumann, during his speech at the annual General meeting in the Bonn Convention center
Almost to the day, exactly three years Werner Baumann is now Bayer-chief. On 1. May 2016, he entered the office of the Chairman of the Board. Since then, the Takeover of the US agricultural chemical specialist, Monsanto is by far the most important issue at Bayer.
Baumann’s predecessor Marijn Dekkers should not be, in principle, have been against the purchase of Monsanto, did not want him to answer. Anders Baumann: Barely in office, he gave on 23. May 2016 the first offer. Meanwhile, the purchase is completed and Baumann standing in front of a pile of broken glass.
It’s nice to see at least the shareholders who have made their Anger at the annual General meeting in Bonn, the Convention center air. “Mr. Baumann, what did you do with our company?”, Joachim Kregel asked of the protection of investors. Under Baumann’s predecessor, the Bayer value was to become the most company in Germany, and since then has halved the share price.
“The former pharmaceutical giant, is mutated to a dwarf,” screamed Ingo Speich of Deka Investment, the securities house of the savings banks. And Marc Tüngler from the German protection Association for securities holding (DSW), the leading investor Association, spoke of a nightmare: “Never before has a Dax has lost so quickly so a lot of value and Reputation.”
Chef lets criticism bounce off
Previously, Werner Baumann had tried for almost an hour to explain why it was a good idea, 63 billions of dollars for Monsanto. “As a result of the Monsanto Acquisition, Bayer is today the leading company in the field of agriculture,” said Baumann.
Whether in the case of seeds, plant protection, biotechnology, genetic engineering, or digital agriculture, Bayer, and Monsanto would complement each other just perfect. And that’ll be worth it soon, also financially, said Baumann, and pointed to expected synergy effects of a year, one billion Euro starting in 2022.
In front of the Congress centre, the environmental activists demonstrated inside of cursing the shareholders
If not for the Problem with the glyphosate. Monsanto had brought the drug in the 1970s as a weed killer Roundup on the market and a lot of money earned. Since the expiry of patent protection, Monsanto is not the only manufacturer, but the most traditional and most famous.
To draw after the International Agency for research on cancer (IARC), which belongs to the world health organization of the United Nations, the purchase of glyphosate in the year 2015 – before the Monsanto – as a “likely carcinogen” and classified, began to cancer users in court – especially in the United States, and especially against Monsanto. Meanwhile, the number of plaintiffs has grown to 13,400.
How expensive are the processes?
Legally valid judgments it is not, but the first two Jury decisions. The US-Americans Dewayne Johnson, who suffers from terminal cancer, was awarded in the autumn, in the first instance, of $ 80 million in damages. The same sum will also get Edwin Hardeman, was a US Jury in March.
Two plaintiffs of 13,400 and already 160 million in costs for Bayer? The group leader stressed before his shareholders that he will not accept. “We have great sympathy for Mr Johnson, Mr hard man, and their families,” said Baumann, “but glyphosate-based products are not the reason for their serious illnesses.”
In both cases, Bayer, in the next instance, and be optimistic that there are “other decisions” are made. The company is based on numerous studies, and the fact that authorities have allowed on the entire world, the weed killer.
Power of emotions
“Cold. Colder. Bayer,” said a shareholder. And in fact, it is also about symbolism and the Power of the images. Here is the wine at the end of Dewayne Johnson, who shows his cancer destroyed skin. Here, the loud self-promotion “leading company for health and nutrition”, which makes even cancer drugs, but now especially the damage caused by Monsanto want to keep.
Obviously The the cancer Dewayne Johnson moves: after the Jury’s verdict in August 2018
“The Management has infected the core of healthy the Bayer group with the Monsanto-Virus,” said Ingo Speich from Deka Investment. Especially since Monsanto is notorious only because of glyphosate. The group is accused of in addition, farmers through the combination of weed killers and genetically modified plants. In India, to have a number of peasants killed because they could no longer bear the rising costs of patented seeds and plant protection products.
Bayer chief Baumann remained unimpressed. “We are being criticised that we focus in connection with Monsanto and glyphosate on the facts, but the emotions are not sufficiently taken into account.” Glyphosate had been by the regulatory authorities and for harmless findings are tested and the “decide, on the Basis of scientific analysis and not on the Basis of emotions,” says Baumann.
The Supervisory Board supports the management Board
Werner Wenning, the former Bayer chief and now Chairman of the Supervisory Board, the strengthened Baumann demonstratively the back. The management of the company have made in the assessments of the risks of the Monsanto Takeover is nothing wrong, said Wenning, the have also confirmed two independent appraisals. The purchase was a good one for Bayer, which will show the future.
Demonstrative support: Werner Wenning, Bayer’s chief overseer and Chairman of the Board Werner Baumann (r.)
How many billions will cost a settlement of the lawsuits in the United States, is still open. So far, the group has provided for the processes of only 600 million euros, some shareholders expect a total cost of 15 billion euros.
Some of the major investors announced their intention to refuse the Board of management and the Supervisory Board discharge in respect of – a largely symbolic act that reflects the confidence of the shareholders. However, even the objectors have stressed that you do not want a personal discussion or even a resignation of the current leadership. In all the Chaos it could not afford the group, if through a change in leadership also day-to-day business is suffering, so is your Argument.