Bayer beware

1 October 2015 By Olaf Storbeck

The German drug giant has slashed the size of its plastics arm’s listing by 40 pct and cut the price by a quarter, blaming China and VW woes. As the proceeds will be used to lower its own debt, its balance sheet will be weaker than it could have been. Bayer should have waited.

This content is for Subscribers only

Context News

Bayer on Oct. 1 cut the size of the planned initial public offering of its plastics unit Covestro by 40 percent to 1.5 billion euros, citing deteriorating capital markets and uncertainty over economic growth in China.

Covestro said the market was impacted by “the negative headlines from the automotive sector”.

Covestro cut the price range for the IPO to 21.50 euros to 24.50 euros, compared with a previous range of 26.50 euros to 35.50 euros. It pushed back the first day of trading for its shares to Oct. 6 from Oct. 2.

Email a friend

Please complete the form below.

Required fields *