Shares in German chemical giant Bayer plunged by over 10% after the group said it could issue new shares to handle potentially costly US lawsuits, the Jordan Times wrote.
“We have heard from shareholders just how much ongoing legal disputes are impacting their investment in Bayer,” the 8 March report quoted the chair of the group’s supervisory board, Norbert Winkeljohann, as saying in a letter to shareholders.
“While we are working to contain legal disputes, we find ourselves in a situation where we may need capital quickly,” he said, adding that Bayer would ask for shareholder approval to issue new stock equivalent to 35% of the group’s current share capital.
Bayer has faced a series of lawsuits linked to its herbicide brand Roundup weedkiller, which came with its US$63bn acquisition of US agrochemical company Monsanto in 2018.
The company had spent more than US$10bn settling litigation in the USA claiming that glyphosate, the active ingredient in Roundup, caused cancer.
Although issuing new shares would allow Bayer to raise cash, it could be unpopular with existing shareholders as it would dilute the value of their holdings, according to the report.
Announcing the company’s annual results on 5 March, Bayer said it had made a net loss of €2.52bn (US$2.74bn).
CEO Bill Anderson said he hoped Bayer could “significantly” contain risks related to US litigation by the end of 2026.
Bayer shares recovered slightly after the initial drop, the Jordan Times report said.
