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EDITOR IN CHIEF- ABDULLAH BIN SALIM AL SHUEILI

Bayer shares surge as firm tackles legal woes

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FRANKFURT: Shares in German chemical and pharmaceutical giant Bayer soared early on Thursday, after the company’s supervisory board announced moves to address a wave of US lawsuits over flagship herbicide glyphosate. Investors sent Bayer stock shooting up 8.2 per cent, to 60.60 euros ($68.90) by 10:40 am in Frankfurt (08:40 GMT).


As the group faces more than 13,000 lawsuits related to the notorious weedkiller, “a newly established Supervisory Board committee will intensively monitor these topics, consult with the Board of Management and make recommendations on the litigation strategy,” the company said in a statement late on Wednesday.


Bayer shares remain more than 30 per cent below their price a year ago.


The weak performance prompted shareholders to blast executives at the company’s April general meeting over its $63 billion takeover of US-based seeds and pesticides maker Monsanto in 2018.


Some of the rise in Bayer stock on Thursday could be down to hints at a change of strategy from the supervisory board.


The company has suffered several high-profile defeats in glyphosate cases, with juries awarding individual plaintiffs tens of millions of dollars.


But executives have until now stuck to their position that the weight of scientific evidence backs the chemical’s safety and vowed to fight on in appeals.


In its Wednesday statement, the supervisory board said it had hired US lawyer John Beisner, highlighting his experience in both “successful defences and settlements”. — AFP


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