According to Bloomberg’s informed sources, German Bayer offers to pay $ 8 billion to resolve the conflict with claims in America. The claim is for the reason that its product- herbicide Roundup – can cause cancer. After the news that Bayer is willing to pay millions, the quotes of the company rose 11% on the Frankfurt Stock Exchange.
According to the reports of Bayer, more than 18 thousand legal suits have been brought against the concern in the United States. Individual claimant who used Roundup and got cancer, have managed to receive multi-million dollar compensation. The herbicide is manufactured by the company Monsanto, which was purchased by Bayer. The deal amounted to 63 billion US dollars. Now the concern has to respond to all claims. After the purchase of Monsanto, Bayer stock price began to fall seriously. The decline continued for more than a year, until the company lost more than a third of its capitalization. For this reason, shareholders have announced that they no longer trust managers.
According to the sources of Bloomberg, negotiations to resolve cases may last for many months. Bayer is now ready to pay no more than $ 8 billion in relation to all claims, but lawyers want to get at least $ 10 billion from the company.
The material was prepared with the participation of Katya Wilson,
a leading analyst of the brokerage company UFT Group