London
Bayer needs to make major changes, including de-merging two of its three business arms, investor Artisan Partners told Reuters on Friday, adding to a chorus of demand for change from other investors.
Activist Bluebell Capital Partners called for a breakup earlier this year. Other top investors, including mutual funds group Deka, had railed against the company’s previous leadership. Some have said an easy fix would be to separate the healthcare and agricultural businesses. Artisan’s call will add to the pressure on Bill Anderson, who was brought in from Swiss rival Roche to take on the top job in June. Anderson has been tasked with reviving Bayer’s share price, which has underperformed rivals, weighed down by the lingering costs of U.S. weed killer litigation.
Artisan wants the drugs-to-pesticides company to find new owners for its over-the-counter and pharmaceutical units, it said.
Recently we wrote a letter to the conglomerate Bayer and it is a conglomerate, David Samra, founding portfolio manager of Artisan’s International Value team, said in an interview.
Bayer has a whole host of problems including too much debt, Samra said.
Anderson said this month he was not ruling out any options as part of his review of the diversified company’s strategy and structure, leaving no stone unturned. Before taking over as CEO, Anderson said he was keeping an open mind on whether to break up the company. But some other investors have opposed such a move.
