At today’s annual General meeting of Bayer will discharge the anger of the shareholders of the Monsanto Disaster. Bayer chief Baumann has to fear for his discharge. The group swallowed to glyphosate?
Bayer in June 2018, at last, after a protracted approval marathon, the US seed giant Monsanto for 62.5 billion take was cheered with the Management of the historic Coup. In the meantime, the joy, the disillusionment is gone. Two ground-breaking judgments in the United States in the case of the glyphosate-processes have caused some unrest in the Leverkusen headquarters.
Two-million dollar judgments against Bayer
A farmer of the plant protection product glyphosate on a field from
a court in San Francisco to a house master for damages of $ 289 million, which was then reduced to 78 million. The jury were of the opinion that the Monsanto-agent Roundup, with whom he had fought in the school yard weed, who is responsible for his lymphatic cancer gland is disease. A few months later, the next blow for Bayer followed: California judge gave a peasant, who in turn had, for years, sprayed with glyphosate to his fields, and granted him a compensation of 80 million dollars.
The Bayer Board of management responded calmly. “Life is always life-threatening,” says Bayer, chief Baumann. Glyphosate is not more dangerous than red meat, Mate tea, or the hairdressing profession. Baumann refers to the international cancer Agency, IARC, has classified the active ingredient as “probably carcinogenic”. More than 800 studies showed that glyphosate in the case of property, plant, and health is more hazardous to emphasize the Leverkusen group. The lawyers of the glyphosate-plaintiff, however, hold with opposite studies. Prominent support comes from Robert Kennedy, jr., A lawyer and the nephew of Ex-US President.
“Biggest destruction of Value of the Dax-history”
Since the first damages judgment, Bayer has 30 billion euros on the stock exchange will be lost. The price has lost almost 40 percent of their value. Corporate Governance expert Christian Strenger of the DWS of the language of “the greatest and fastest destruction of Value in the Dax history”. Numerous shareholder representatives and Fund managers have announced their intention to withdraw, therefore, Bayer chief Baumann trust.
for More of the course is to votes about Bayer
So the Deka, tenth-largest shareholder, against the discharge of the Executive Board and the Supervisory Board. “We understand this as a warning signal,” said Fund Manager Ingo Speich. Also, the asset Manager Blackrock, which holds, as the largest shareholder, a total of more than six percent to Bayer, does not want to relieve the Board of Directors. In addition, Institutional Shareholder Services (ISS) and Glass Lewis, two influential proxy advisers, the refuse of the Bayer Board of management of the discharge.
Baumann threatens bitter defeat on the HV
The ten largest Bayer-shareholders
so It could be tight in the afternoon: If Baumann can’t get a majority, he would become the first head of a Dax company who gets no relief. Although such a vote is not binding, but the Signal would be devastating for the Supreme Bayer-Arm, sees the Monsanto Takeover as his life’s work.
“Mister glyphosate” you must declare on the annual General meeting to the shareholders finally, as Bayer is the crippling litigation from Monsanto’s out of the way, we want to create and where of the Leverkusen tradition, the group controls in the future. Baumann will answer the question of whether the weed killer is the capital destructor, or magic potion for Bayer.
From Lipobay to Xarelto
Bayer Logo with Paragarphen-sign in front of it
in Trouble, the group is accustomed to. The anticoagulant Xarelto, and the contraceptive Yasmin have to worry about Leverkusen with a number of processes due to the alleged side effects. Particularly painful experience with Lipobay. In 2001 Bayer had to take the controversial cholesterol-lowering drug from the market and after a lengthy legal battle 1.2 billion dollars to numbers of patients, the muscle had suffered paralysis and other side effects. The stock slumped to up to ten euros.
Five to 30 billion in damages?
this Time it could be significantly more expensive. Estimates range from five to 30 billion euros, which could come to Bayer to claims for damages. The US processes experienced research service, Bloomberg Intelligence of five billion euros as a burden. If it would be more – perhaps tens of billions of euros, one would have to question the sense of the deal, says Union Investment Fund Manager Markus’s. At a price of around 60 EUR 20 to EUR 25 billion are currently in compensation payments priced in, he says. Still, Bayer has formed but only a few hundred million euros as provisions.
of debt of 36 billion Euro.
The Problem: now, the group is in debt because of Monsanto’s Acquisition of almost 36 billion euros. This is a heavy burden and a Problem for the Rating. After the Monsanto-Deal Standard & Poor’s has downgraded the credit rating of Bayer of “A-” to “BBB”.
Monsanto
Monsanto has developed increasingly a driver of growth. In the first quarter of the seed giant has contributed significantly to the jump in earnings in the agricultural business. Glyphosate is sold at the moment, especially in China very well. Of the merger with Monsanto, Bayer expects to 2022 synergies of € 870 million.
veterinary medicine and chiropody
make repelled By Bayer more powerful, and more profitable, wants to Baumann to sell in this year, the veterinary medicine, business and the shares in the Leverkusen chemical Park operator Currenta. This could bring in, according to analysts ‘ estimates of around eight billion euros. Similarly, the areas of sun protection and foot care are available for sale.
by 2022, wants to Bayer chief Baumann with the in-depth transformation of the group available funds in the amount of 23 billion euros generate. Part of it could be sufficient to Finance any comparisons with the glyphosate-plaintiffs.
Is columns to Bayer?
if not, could the price of Bayer to recover until next year, however, and the company stand financially weakened, it is activist investors to split push. Then Bayer would be in the pharmaceutical and Agricultural split. Possibly one of the Bayer-divisions could be on the takeover of the object. So far, of course, “Mister glyphosate”, Werner Baumann stands vehemently opposed to such a split-up discussions. The Bayer brand is a strong connecting bracket, he protested. For how long?
source: boerse.ard.de
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