Bayer Shares Suffer as Bad News Mounts Up

   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 [e-mail]; @mxbernhard

(END) Dow Jones Newswires

August 16, 2018 05:42 ET (09:42 GMT)

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