Bayer Shares Jump on Weedkiller Payment Proposal
February 04 2021 - 6:41AM
Dow Jones News
By Joshua Stein
Shares in Bayer AG rose on Thursday after the German chemical
and pharmaceutical giant proposed a $2 billion deal to address
future litigation over its controversial glyphosate-based
weedkiller Roundup.
At 1106 GMT, shares in Bayer traded 4.8% higher at EUR53.97.
Bayer's proposal, released late Wednesday, would discount the
need for further financial provisions associated with the Roundup
weedkiller in the U.S., which some claim causes cancer.
Analysts were widely upbeat on the development. Citi said the
proposal should boost market sentiment, while UBS said the
proposals "seem to address the judge's concerns" raised over
Bayer's first proposal in July.
Bayer has been dealing with litigation over Roundup safety since
it acquired Monsanto Co., the weedkiller's manufacturer, in
2018.
The company agreed last June to pay up to $9.6 billion to settle
existing Roundup cases, while continuing to deny any connection
between the product and cancer. That deal didn't prevent more
plaintiffs from coming forward in the future.
Write to Joshua Stein at joshua.stein@wsj.com
(END) Dow Jones Newswires
February 04, 2021 06:26 ET (11:26 GMT)
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