(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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