Bayer has further reduced its stake in Covestro by offering 19 million shares to investors, and they bought at €63.25 per share. Bayer cashed in c.€1.2bn and the stake in Covestro has now declined from 40.85% to 31.47%.
This raises the question as to whether this stake is sufficient to dominate the company at an AGM. We believe Bayer will still dominate Covestro. Therefore, we do not expect any change in the reporting but, according IFRS 5, Covestro has to be reported as at-equity when Bayer no ....
13 Sep 2017
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Bayer AG (BAYN:WBO) | 0 0 0.5% | Mkt Cap: 80,975m
- Published:
13 Sep 2017 -
Author:
Martin Schnee -
Pages:
2
Bayer has further reduced its stake in Covestro by offering 19 million shares to investors, and they bought at €63.25 per share. Bayer cashed in c.€1.2bn and the stake in Covestro has now declined from 40.85% to 31.47%.
This raises the question as to whether this stake is sufficient to dominate the company at an AGM. We believe Bayer will still dominate Covestro. Therefore, we do not expect any change in the reporting but, according IFRS 5, Covestro has to be reported as at-equity when Bayer no ....