Friday , May 7 2021

Monsanto: Shunning Bayer's shareholders

Monsanto: Shunning Bayer's shareholders

Sunday, 28.04.2019

Werner Baumann boss again defended his historic gamble to pay $ 63 billion for the giant seeds and genetic engineering. (Keystone)

Bayer's shareholders cast a rare denunciation of the German chemical group this week by voting against the management at the first general assembly held after the costly takeover of Monsanto in June 2018.

They rejected 55.5% of the "activities of the library" led by Werner Bauman, and opened a crisis with unexpected consequences: the vote does not bind Bayer, but in sharp contrast to a referendum he gave last year with 97% approval.

For more than an hour, the General Assembly took place on Friday in Bonn in a particularly stormy climate, surrounded by hundreds of environmental protestors who protested against the two "bee killers" and Monsanto's glyphosate.

Investors are alarmed by a nearly 40% drop in Bayer's share price since the acquisition of Monsanto, as legal troubles for the new entity have gained.

In the past year "was a nightmare for shareholders," "The stock market promises us sleepless nights," said Marc Tomler, DSW's investor federation.

Feed the world

Boss Werner Bauman again defended his historic gamble to pay $ 63 billion for a huge GMO seed, after two years of efforts to convince the authorities of the competition.

In the long run, Bayer is banking on the growing support of agriculture chemistry to feed the world's growing population, while climate change has been disrupting agricultural land.

Mr. Bowman, the economic relevance of marriage remains intact, as the merged group holds "leading activities in the chemical and biological protection of crops, conventional seeds + biotechnology + and digital assistance for agriculture."

But the honeymoon of the two groups was consistent with two convictions in the United States because of the carcinogenicity of Monsanto's Roundup Glyphosate, RoundUp, which paved the way for about 13,400 similar requests.

"Bayer's management fully adhered to the legal risks of its agreement with Monsanto," said Anne Waffinning of Union Investments, quoted by German news agency DPA.

This heavy barrage of procedures is "to impose a heavy burden on our society and upset many people," Mr. Bowman admitted in the first place, remaining "optimistic" on the legal front.


Bayer hopes the appellate courts seized in the first two cases in the United States will "make different decisions," "based on scientific analysis rather than emotion," the leader pleaded.

The German group has been hammering since last summer that no regulator in the world has summed up Glyphosate's risk since its marketing in the mid-1970s and has introduced "800 rigorous studies" on its effects.

The International Center for Cancer Research, an affiliate of the World Health Organization, considered in 2015 that glyphosate was "probably carcinogenic" as well as the California jury who sentenced to Monsanto.

Since the collapse of its stock market, the aspirin maker has been estimated at more than 57 billion euros, just slightly more than the price he agreed to swallow his target.

"Within two years, the former pharmaceutical giant has become a dwarf," and now runs the risk of "being absorbed and dismantled" by predator, concerned Ingo Speich, Bank Deka.

But for Werner Bauman, the current dissatisfaction of investors for the title is "excessive" and does not reflect the "real value" of the group. (AWP)

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