Bayer Shares Jump on Report of Potential $8 Billion Roundup Settlement -- 2nd Update
August 09 2019 - 06:41AM
Dow Jones News
(Adds share price, Bayer response, background)
By William Boston and Nathan Allen
German chemicals and pharmaceutical giant Bayer AG (BAYN.XE)
declined to comment on a report that it was willing to pay up to $8
billion to settle thousands of lawsuits alleging its Roundup
weedkillers cause cancer.
A report published by the news agency Bloomberg sent Bayer's
shares soaring as much as 11% as investors welcomed the prospect
that the lawsuits could be put to rest.
"We do not comment on rumors," Bayer spokesman Christian Hartel
said:
Since acquiring Roundup maker Monsanto Co. last year for $63
billion, Bayer's value has plunged as thousands of plaintiffs have
filed suits claiming exposure to the weedkillers caused them to
develop cancer.
In its most recent quarterly earnings report, Bayer said that
the number of plaintiffs filing suits against it had risen by
5,000, bringing the total to 18,400. The company has lost several
jury trials in the U.S. and analysts have been struggling to gauge
the extent of the company's liabilities.
At 1006 GMT shares were trading 4.6% higher at 65.86 euros
($73.77), having hit a high of EUR70.04 in the session.
In its most recent quarterly earnings report, Bayer said that
the number of plaintiffs filing suits against it had risen by
5,000, bringing the total to 18,400. The company has consistently
defended Roundup's safety record and said the claims against it
don't stand up to scientific scrutiny.
In June, Bayer said that it would seek outside legal help and
form a dedicated supervisory-board committee to oversee its legal
strategy.
Bernstein analyst Gunther Zechmann said Bayer's shares could
rise as much as 30% if the company secures an $8 billion
settlement. However, he noted plaintiffs are likely to demand more
than the $400,000 per person implied by such a deal.
Write to William Boston at william.boston@wsj.com and Nathan
Allen at nathan.allen@dowjones.com
(END) Dow Jones Newswires
August 09, 2019 06:26 ET (10:26 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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