Bayer extends Schering AG offer acceptance for two weeks

Bayer has announced it has extended the period during which Schering AG shareholders can accept or decline its takeover bid, which needs 75 per cent approval from the shareholders in order to happen.

So far, 18.49 per cent of Schering AG shareholders have agreed to the deal and Allianz AG, which holds 11.4 per cent of Schering’s stock, has also signalled its approval. Bayer described this as “good progress” and it added that the additional two weeks was an automatic extension that followed an alteration of the offer that would not adversely affect either company.

Bayer said it was “convinced” that it would get the necessary 75 per cent for the approval of the takeover. Werner Wenning, Bayer’s management board chairman, remarked: “The extension of the acceptance period enables all Schering stockholders to accept our attractive offer within the next two weeks.”

According to Reuters, the takeover, which has the backing of Schering AG’s board, will cost 16.5 billion euros (11.3 billion pounds). Under German takeover law, no further alterations to the takeover bid are now possible.

Earlier in the year, Schering AG dismissed a takeover bid from Merck as the board felt that Merck’s offer “significantly undervalues” Schering AG.

Dr Hubertus Erlen, Schering AG’s chairman of the executive board, said: “Bayer’s proposal has been carefully examined considering the interests of all stakeholders. It includes a fair price and additional important commitments.”

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