The pharmaceutical and agricultural chemical group, Bayer does not appear to change its strategy in order to get the wave of lawsuits against the weed killer glyphosate in the handle. A new Investor to show himself.
Bayer wants to get to be glyphosate-Problem with a set-piece Committee of the Supervisory Board in the handle, and as a result, garners popularity of the hedge Fund Elliott. “The Supervisory Board considers the negative impact of the uncertainty in connection with the court proceedings on the share price and the perception of the stakeholders, and will support the company in the complex issues decisively and with care to bring forward,” said the Dax-listed group on Wednesday evening after a meeting of the Supervisory Board. A newly established Committee to be composed of eight members of the controlling Committee, together, will advise the Executive Board and proposals to the process of strategy making. Several members of the Committee procedure according to Bayer’s “extensive experience with complex trials.”
Bayer stock is set to increase to kick-off in Frankfurt on Thursday vigorously and with a Plus of 6.5 per cent at the peak of the gain values. However, the current price of 59 Euro is far from the previous peak (142 euros in April 2015).
Bayer is due to the 63 billion-Dollar Acquisition of the US seed company Monsanto – comes from the house of the controversial weed killer, glyphosate – under pressure. Werner Baumann had not been relieved at the General meeting at the end of April as the first acting Chairman of the Board of a Dax company of the shareholders. Because of the legal disputes around glyphosate weighing heavily on the share price of the group. Glyphosate is suspected of causing cancer. In the United States, Bayer is therefore with about 13,400 plaintiffs faced.
The couple Pilliod (with their lawyers) got just under two billion dollars in damages awarded
Elliot looks Bayer on the Finger
An Insider, according to Bayer seems to have his approach to legal disputes changed. Instead of trying to want to assert themselves and to fight to the end, go now to the faster search for a comparison, in order to calm investors and employees.
On Wednesday, the hedge Fund Elliott from the cover ventured for the first time. The Reuters news Agency at the end of 2018 by insiders, that the funds of U.S. Investor Paul Singer is expected to be under three percent in the case of Bayer. Held his plans in Elliott yet covered. Now Elliott stated that they welcome the planned steps and be confident, “that the present Declaration constitutes a fundamental change in Bayer’s current approach to addressing the legal challenges”. This will create opportunities for a “time would result in a middle compared with a limited financial effort”. Because the process strategy of Bayer in need of a fundamental Revision. Experts expect already for a long time with a comparison. He is likely to vacate billion cost, Bayer could be glyphosate, but virtually all of the suits at once from the table.
Elliott advised Fund of Investor’s equities and economically equivalent instruments to Bayer in a total value of 1.1 billion euros. An Insider, according to the proportion of Bayer amounts to 2.1 percent. Elliott explained that while the solution to the challenges in the legal disputes first priority. Bayer could do more for the long-term value creation for the benefit of all stakeholders. “Elliott is of the view that the currently low share price of Bayer does not reflect the significant value of the individual business units and the existing value creation opportunity of more than 30 billion euros to resist,” it said. To immediate, profound structural changes, not trying to rush Elliott Bayer, an Insider said.
In the first process, the former caretaker Dewayne Johnson were awarded in August 2018, nearly 290 million dollars in damages
Additional Expertise from outside
The 20-member Supervisory Board decided on concrete measures to deal with the current legal process and mediation activities. What exactly is planned, leaving Bayer open but. Additional Expertise the group brings to the U.S. attorney John Beisner of the law firm of Skadden into the house to advise the Supervisory Board to the right of the complex glyphosate. Beisner, of the suits is an expert on product liability and for the U.S. pharmaceutical group Merck & Co in the scandal surrounding the painkiller Vioxx worked, to attend the meetings of the new Committee.
The Committee is chaired by Supervisory Board Chairman Werner Wenning, who had led Bayer as the chief Executive officer of the crisis and the wave of lawsuits because of the Cholesterol-lowering drug Lipobay. He is the half of the members of the employer as well as employees. This also includes the Supervisory Board member Paul Achleitner include, among others, in addition to works Council chief Oliver Zühlke. He is used to as Chairman of the Supervisory Board at Deutsche Bank in Trouble.
Wenning emphasized that Bayer’m also in the investors ‘ desired to further strengthen the Supervisory Board’s expertise, particularly in the area of agriculture and food is good. “We are with the excellent and highly respected candidates in the interview.” Currently, the panel is positioned very well to meet the challenges for Bayer. A Bayer spokesman declined to comment on whether, in the short to medium term changes in the Supervisory Board.
hb/ab (rtr)