- Bayer (DE:BAYGN) (OTCPK:BAYRY -2.5%) has cut the value of its takeover of Monsanto (MON +0.1%) by $2.5B, which combined with windfalls from asset sales means it may have to raise less than expected from shareholders.
- Bayer finance chief Johannes Dietsch says the deal is now valued at $63.5B including debt, down from an initial $66B, because the U.S. company had lowered its financial liabilities.
- “We will examine whether and to what extent the equity component of the financing will change,” says Bayer CEO Werner Baumann, who reiterates that the capital raise would happen through a rights issue so as not to water down existing investors and not take place before next year as it awaits antitrust approval for the MON deal.
- Bayer shares are lower, with some analysts citing weaker than expected consumer healthcare revenues after the company reported a 4% increase in Q3 operating earnings, driven by gains in prescription drug sales.
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