Bayer investor Artisan calls for break up

Artisan Partners Asset Management

25/08/2023 17:12

(Adds comments from interview in paragraphs 3 to 5)
    By Richa Naidu
       LONDON, Aug 25 (Reuters) - Bayer  BAYGn.DE  is a
"conglomerate" that needs to make major changes including
"de-merging" two of its three business arms, investor Artisan
Partners told Reuters on Friday.
    Artisan wants the drugs to-pesticides company to demerge its
over-the-counter and pharmaceutical units, it said.
    "Recently we wrote a letter to the conglomerate Bayer -- and
it is a conglomerate," David Samra, founding portfolio manager
of Artisan's International Value team, said in an interview.
        Bayer has a "whole host of problems" including "too much
debt," Samra said. 
  
        We suggested "that they cut the dividend to zero because
they need the capital to effectively operate and reinvest back
in their business," he said, adding that the letter was sent
prior to Bayer's earnings results announcement on August 8.
  
        Artisan is Bayer's sixth biggest investor, according to
Refinitiv data.
  
        Bayer declined to comment.
  

 (Reporting by Richa Naidu; Editing by Matt Scuffham)
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