By Ian Walker
Bayer plans to seek shareholder approval at its upcoming annual general meeting to issue up to 35% of its issued share capital in the event it needs to raise urgent cash toward litigation in the U.S.
The pharmaceutical and agricultural conglomerate said Friday that it has no specific plans to utilize the capital request. It added that following feedback from shareholders, it won't use the authority to fund mergers and acquisitions.
"We commit that the proceeds of any issuance would be used solely to maintain balance-sheet resilience while resolving litigation, and not to finance external growth such as M&A transactions," Bayer said.
It added that any share issues would be carefully evaluated to ensure they benefit shareholders.
Bayer remains embroiled in legal battles stemming from its Monsanto business, as plaintiffs blame its Roundup weedkiller for causing cancers--something the company denies. The $63 billion acquisition of Monsanto in 2018 was designed to turn the inventor of aspirin into the world's biggest crop-science business, but instead saddled it with debt and litigation.
Bayer is holdings its annual general meeting on April 25.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
March 07, 2025 09:12 ET (14:12 GMT)
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