From Ludwig Burger
Frankfurt (Reuters) -Bayer said several brokerage houses about the plans for the request of a shareholder’s license to issue shares the day before officially announced the news on Friday, which were strongly deal with supplies, the notes of analysts seen by Reuters showed.
The Health and Agriculture Group announced in a statement on Friday that she would request a shareholder’s approval at his annual meeting of April 25. The potential increase in shares by about 35% in the next three years to cover the possible costs of litigation.
Its shares fell by as much as 10% and closed 6.5% lower.
In a note from Thursday and seen by Reuters, Jeffers’ analysts say to clients about Bayer’s plan, citing the detailed remarks of Bayer’s leadership on the meeting of that day of analysts on the side of sales from several brokers. Jefferies did not immediately respond to the comment request.
Two other analysts sent more informal notes that Reuters saw to clients on Friday through a message exchange system, which made it clear that they had learned the plan at meetings with Bayer on Thursday.
The brokers did not comment or did not immediately respond to the comment request on Friday. The German financial market regulator Bafin did not immediately respond to the commentary request.
Bafin requires that companies that are listed on the list that they spread information with the potential to move the price of the shares “as widely possible as possible on the non -discrimination basis.”
Bayer spokesman said that the latest proposal aligned with the previous approval of shareholders to increase capital increase from 35% by 2019. Bayer also had a conditional capital of 10% available at that time, he added.
A spokesman pointed out a presentation presided over by Norbert Winkeklhann Chairman in January, saying that the company was considering voting on capital collection.
In the sign that the market launch of the potential of Bayer’s move may have been difficult to predict, analysts have independently expressed a surprise on the fall in price on Friday. Some even said that Bayer’s move could be considered a positive development by working to deal with litigation, which includes lawsuits due to glyphosata of the weed killer.
“Not saying that it was positive, but CFO spoke about it is a standard procedure for yesterday’s meeting on the side of sales,” the message of one of the analysts said, referring to Bayer’s plan to seek voting on capital collection.
Analysts cited Bayer executives on Thursday that the size of a cash call is not unusual.
At the presentation for investors and analysts in January, Winkeljohann said Bayer demanded that he ask for a shareholder approval for an indefinite approval of capital at the capital at this year’s annual assembly.
