Bayer: Cannot Forecast Ligitation Outcome
FRANKFURG (Reuters / February 26, 2003) - Germany's Bayer AG said on
Wednesday it was impossible to forecast the outcome of litigation over
its recalled cholesterol drug Baycol, and it might consider provisions
for liabilities analysts fear could total billions of euros.
The news sent its already battered stock down a further 12 percent,
to the lowest level in more than decade.
" Proceedings are at an early stage," Chief Executive Werner
Wenning told an investors' conference in Frankfurt.
" It's impossible to predict the outcome of any litigation, particularly
in the United States," he said, adding: "We will address the
question of provisions appropriately in the future."
Bayer has said in the recent past that insurance is enough to cover
for any liabilities arising from Baycol.
Shares in the German drugs and chemicals group have collapsed this week
on fears it could face damages claims of up to 10 billion euros ($10.76
billion) if negligence is proved, more than the company's market capitalization.
The stock has lost more than a fifth of its value since the start of
the week, and at 1216 GMT shares were 9.3 percent lower at 11.17 euros.
Bayer's six percent bond due April 2012 was bid at 236.8 basis points
over benchmark government bonds by 1225 GMT, more than 28 basis points
wider on the day. The bond's price fell 1.9 points, to 98.68 percent
of face value.
NERVOUS MARKETS
Analysts said the Bayer chief executive's comments underlined the uncertainty
over Baycol. |
