© Reuters. FILE PHOTO: Logo of Bayer AG is pictured February 27, 2019. REUTERS/Wolfgang Rattay/File Photo
By Ludwig Burger
FRANKFURT (Reuters) – Top three Bayer (OTC:) shareholder Harris Associates on Thursday came out in strong support of the drugmaker’s CEO for suspending work on a separation of the diversified group and to focus on improving the company’s operating performance.
(CEO) “Bill Anderson is absolutely taking the right path to enhance value creation at Bayer which will benefit all of Bayer’s stakeholders,” Harris Associates’ Vice Chairman David Herro told Reuters in a written statement, responding to a request for comment on the group’s capital markets day this week.
He said the CEO was rightly focusing on efforts to “turn three very good businesses into great businesses”.
“Once this is accomplished, then you have optionality in terms of corporate structure,” Herro added.
The endorsement takes some pressure off CEO Anderson, who on Tuesday said he will pause considerations to break apart the group for up to three years to focus on problems including debt and litigation.
Investors were dubious about whether enough is being done to revive its fortunes. The shares plunged 8.5% on the day, and losses on Thursday 1300 GMT were at 10% over the past three trading sessions.
Anderson, who was hired last year to turn Bayer around, previously said he was examining options to separate, spin off or sell businesses. Reuters reported last month that no such action was on the cards for now.
