Bayer Mediator: $8 Billion Roundup Settlement Report 'Pure Fiction' -- 3rd Update

(Adds statement from Kenneth Feinberg)

 
    By William Boston, Nathan Allen and Sara Randazzo

German chemicals and pharmaceutical giant Bayer AG (BAYN.XE) hasn't proposed a $8 billion settlement for its Roundup weedkiller lawsuits, a mediator appointed to Bayer's case said Friday.

A report published by Bloomberg sent Bayer's shares soaring as much as 11% earlier in the day as investors welcomed the prospect that the thousands of lawsuits alleging Bayer's Roundup weedkillers cause cancer could be put to rest.

But Kenneth Feinberg, a well-known mediator appointed by a federal judge to try to resolve the cases, said that Bayer, Monsanto and the plaintiffs lawyers haven't yet begun to discuss dollars. "It's pure fiction," he said of the Bloomberg report.

Bayer declined to comment on Mr. Feinberg's statement or the report that it was willing to pay up to $8 billion to settle the Roundup lawsuits.

Mr. Feinberg said that the mediation process will continue into next month. "We'll see where we are at the end of September. There's nothing absolutely nothing to it," he said.

At 1453 GMT shares were trading 1.8% higher at 64.06 euros ($71.76), having hit a high of EUR70.04 in the session.

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 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.

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 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, Sara Randazzo at sara.randazzo@wsj.com and Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

August 09, 2019 11:38 ET (15:38 GMT)

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