By Sam Boughedda
Bluebell Capital Partners has reportedly built a stake in Bayer AG (ETR:BAYGN) (OTC:BAYRY) and is urging a breakup of the German pharmaceutical and agriculture company, Bloomberg reported Tuesday.
Citing people with knowledge of the matter, Bloomberg said the activist investor has acquired an undisclosed holding in Bayer and is also striving to overhaul the company's corporate governance.
It follows news yesterday that another activist investor, Jeff Ubben's Inclusive Capital, has a 0.8% stake in the company and is pushing for it to hire an external CEO. Meanwhile, activist Elliott Investment Management has, in previous years, called on the company to consider splitting up.
Bluebell is said to have been talking to Bayer's supervisory board over the past few months and has asked the company to separate its crop science business from its pharmaceutical unit. They reportedly believe it could result in a more than 70% upside for shareholders.
In addition, the activist investment firm has also been pushing Bayer to look at selling or listing its consumer health business and is calling for the company to instill a new independent chairman for its supervisory board.
Bayer's American depositary receipts are currently trading over 6% higher following the news after rising as much as 8.5% in the immediate aftermath.