Bayer: Merck KGaA will not defeat us

Bayer has said it still determined to acquire Schering AG and is considering making a mandatory offer for the company if its current bid falls through. Additionally, Bayer has said it is suing Merck KGaA because of its “dubious tactics” that appear to be an attempt to scupper Bayer’s bid.

Schering AG has been subject of a friendly takeover bid from Bayer, but Merck KGaA also covets Schering and has bought enough shares in that company to possibly block Bayer’s takeover – an act described by Bayer as “incomprehensible”.

Bayer’s management board chairman, Werner Wenning, slammed Merck KGaA’s acts as an attempt to harm the development of Schering and he promised that he would “prevent Merck’s tactics” from succeeding.

He said: “We will continue to put up a good, fair fight for Schering because we are convinced that together we can create value from which everyone benefits: Schering, Bayer and our stockholders and also Germany as a location for the pharmaceutical industry.”

Furthermore, Bayer has accused Merck KGaA of not acting within the “letter and the spirit” of capital market law by withdrawing and then reviving a bid without “proper explanation”.

Dr Roland Hartwig, Bayer’s general counsel, remarked: “The effect of Merck’s tactics has been to withhold important information from the financial markets, putting Schering stockholders at a disadvantage and harming Bayer.”

“By not announcing its intentions in purchasing the shares, Merck has failed to comply with the requirements of the US capital market,” he concluded.

Merck KGaA has not as yet made an official statement regarding its intentions, other than revealing it had increased its stake in Schering AG.

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