Bayer: Liberum estimates settlement cost at E9 per share
(CercleFinance.com) - Bayer's out-of-court settlement to put an end to the numerous legal proceedings initiated in the United States against its subsidiary Monsanto's herbicides should cost the German group a maximum of 9.
2 billion euros, or the equivalent of nine euros per share, Liberum analysts said Wednesday.
The British broker said that it expects Bayer to pay around 12 euros per share to settle these disputes, which leads it to expect a favourable reaction from the market.
On the Frankfurt Stock Exchange, the Bayer share rose by 6.5% on Tuesday in anticipation of a deal.
Liberum nevertheless believes that the resolution of the Roundup disputes does not resolve questions surrounding the strength of the conglomerate's structure.
"There's no question that the Monsanto acquisition has been an enormous and costly exercise and must have created significant distraction across the group," the analyst says.
"We think calls for a break up will intensify," it adds.
Liberum has a buy rating on Bayer shares, with a target price of 87 euros (price at midday = 69 euros).
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The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.
2 billion euros, or the equivalent of nine euros per share, Liberum analysts said Wednesday.
The British broker said that it expects Bayer to pay around 12 euros per share to settle these disputes, which leads it to expect a favourable reaction from the market.
On the Frankfurt Stock Exchange, the Bayer share rose by 6.5% on Tuesday in anticipation of a deal.
Liberum nevertheless believes that the resolution of the Roundup disputes does not resolve questions surrounding the strength of the conglomerate's structure.
"There's no question that the Monsanto acquisition has been an enormous and costly exercise and must have created significant distraction across the group," the analyst says.
"We think calls for a break up will intensify," it adds.
Liberum has a buy rating on Bayer shares, with a target price of 87 euros (price at midday = 69 euros).
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The information and analyses distributed by Cercle Finance are only intended as decision-making support for investors. Cercle Finance's responsibility may not be entailed, either directly or indirectly following the use of such information and analyses by readers. Any non-professional investor is recommended to consult a professional advisor before making any investment decision. This indicative information in no way constitutes any invitation to sell or buy securities.