Bayer Shares Suffer as Bad News Mounts Up
16 August 2018 - 10:57AM
Dow Jones News
By Max Bernhard
Shares of Bayer AG (BAYN.XE) fell Thursday as a series of media
reports added to investors' concerns following a hefty legal charge
last week for recently acquired Monsanto.
Charles Bentley, an analyst at Bernstein pointed to a string of
negative news over the recent days, which weighed down
sentiment.
At 0923 GMT, Bayer shares traded 5.4% lower at EUR76.45.
Last week, a California state jury found that Monsanto's Roundup
and Ranger Pro products presented a "substantial danger" to
consumers, and that the St. Louis-based company knew-or should have
known-the potential risks they posed. The court ordered the company
to pay $289.2 million.
Controversy surrounding Monsanto's weed killer and glyphosate
has been ongoing for years, with studies showing mixed results
about its potential health hazards.
Monsanto said that as of February it had a recorded liability of
$254 million relating to various product claims and that it is
aware of 5,200 plaintiffs who claim to have been injured by
exposure to glyphospate-based products.
On Wednesday, media reported that glyphosate, which is the
active ingredient in Roundup, had been found in a range of
breakfast foods aimed at children, according to U.S. public health
organization Environmental Working Group.
Monsanto is also facing a lawsuit by farmers in Alabama over its
Dicamba herbicide, according to other media reports, and the
Canadian government said Wednesday it may restrict the use of two
types of crop chemicals linked to bee deaths, including one
produced by Bayer.
Bayer closed its $60 billion-plus acquisition of Monsanto in
June, after agreeing to concessions that included selling off about
$9 billion in assets.
Anthony Shevlin contributed to this article.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
August 16, 2018 05:42 ET (09:42 GMT)
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