Bayer up after article suggests possible CropScience spin-off

Bayer Cropscience

10/07/2023 07:52

** Shares in Bayer  BAYGn.DE  are up around 3% in early
Frankfurt trade amid media speculation the German
drugs-to-pesticides giant could spin off and list its
CropScience unit
    ** On Friday, German news service Platow Brief published an
article saying, without citing sources, that Bayer's CEO Bill
Anderson is "under pressure" from investors to boost share price
and clean up the legacy of his predecessor, and is considering a
spin-off of the agrochemicals unit
    ** Bayer could not immediately be reached for comment
    ** "The rumours are unconfirmed, but shares have been soft
over last few weeks - investors may be hoping for a break-up to
reverse years of stock price underperformance," Berenberg
analyst Sebastian Bray says
    ** A local trader says analysts estimate the crop unit's
enterprise value at around 70 bln euros ($76.6 bln)
    ** "Unlocking the conglomerate discount ... remains the
greatest single catalyst for the Bayer investment case,"
Jefferies says
    ** Jefferies adds a split would enable management to focus
on value creation in each side of the business given the
"limited strategic overlap" between the two highly specialised
units
    ** "Spin off article light on details, but could help
improve sentiment," Barclays says
    ** The stock tops German blue-chip index  .GDAXI  in early
trade

($1 = 0.9136 euros)

 (Reporting by Anna Mackenzie)
 ((Anna.mackenzie@thomsonreuters.com))