Bluebell has asked Bayer to separate its crop science business from its pharmaceutical unit, which it argues could lead to more than 70% upside for shareholders, sources said. — Reuters
NEW YORK: Activist investor Bluebell Capital Partners is building a stake in Bayer AG and pushing for a breakup of the German pharmaceutical and agriculture company, people with knowledge of the matter say.
Bluebell, which has amassed an undisclosed holding in Bayer, is also seeking an overhaul of the company’s corporate governance, according to the people.
It has been speaking to Bayer’s supervisory board behind the scenes over the past few months, the people said, asking not to be identified because the information is private.
The activist has asked Bayer to separate its crop science business from its pharmaceutical unit, which it argues could lead to more than 70% upside for shareholders, the people said.
It’s also been pressing Bayer to explore a sale or listing of its consumer health arm and is calling for a new independent chairman for its supervisory board, according to the people.
Bayer’s American depositary receipts rose 6.4% to US$14.70 (RM64.29) in New York trading, giving the company a market value of about US$58bil (RM253.7bil). They had earlier jumped as much as 8.5%, the biggest intraday gain since November 2020.
Chief executive officer Werner Baumann has been under pressure from Bayer shareholders since the company’s 2018 deal for crop science giant Monsanto.
Activist Elliott Investment Management has previously called on Bayer to consider splitting up. On Monday, Jeff Ubben’s Inclusive Capital Partners disclosed a 0.8% stake in the German company.
Bayer’s US$63bil (RM275.5bil) takeover of Monsanto quickly became a legal headache, and the company has set aside an estimated US$16bil (RM70bil) to cover lawsuits claiming controversial weedkiller Roundup causes cancer. — Bloomberg
