Activist Investor Builds Stake In Bayer, Pushes Breakup

  • Activist investor Bluebell Capital Partners has built a stake in Bayer AG BAYRY BAYZF and is pushing it to split up. 
  • The activist has been speaking to Bayer's supervisory board behind the scenes over the past few months.
  • Bluebell has accumulated an undisclosed holding and is seeking an overhaul of Bayer's corporate governance, Bloomberg reported citing some people familiar with the matter.
  • Bluebell has asked Bayer to separate its crop science business from its pharmaceutical unit, which it argues could lead to more than a 70% upside for shareholders, the report added.
  • The investor has also been pressurizing Bayer to explore a sale or listing of its consumer-health arm.
  • Bayer CEO Werner Baumann has been facing shareholder pressure since the Monsanto deal for $63 billion. The company has set aside an estimated $16 billion to cover lawsuits claiming controversial weedkiller Roundup causes cancer.
  • Related: Roundup Weedkiller Maker Bayer Won Five Consecutive Cases, Shifting Momentum In Bayer's Favor.
  • Price Action: BAYRY shares closed at $14.70 on Tuesday.
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