Schering board backs Bayer bid

Schering AG has announced it will support an offer from Bayer for the outstanding shares in the company.

The executive board has evaluated the 86 euros per share voluntary public cash offer from Bayer and has said it will recommend to shareholders that they accept the Bayer proposal.

“The executive board has carefully examined the proposal considering the interests of all stakeholders,” said Dr Hubertus Erlen, chairman of the executive board of Schering AG.

“Joining forces of Schering and Bayer will form a leading specialised pharmaceutical company. Both businesses are complementary and follow the same strategy. Together they will be even more competitive internationally.”

If the Bayer offer is accepted, the new company will take the name Bayer Schering Pharma, with headquarters located in the German city of Berlin.

The Bayer offer values Schering at 16.3 billion euros, a 29 per cent increase on the XETRA closing price on March 10th 2006.

Bayer rival Merck KGaA has recently made an unsolicited bid for Schering AG that was opposed by the board.

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