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#1 Sep 01, 2019 9:00 am

Expat
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Share holders in Bayer catch cold

Thanks to Monsanto purchase



>>In an article published on August 28th, the Wall Street Journal called Bayer’s purchase of Monsanto “one of the worst corporate deals” in recent history… a dubious distinction that has put the German company in a precarious position.

Before Bayer purchased Monsanto last year, shares of the company were selling for around $30 each. Despite concern surrounding Monsanto’s blighted name, Werner Baumann (who had just stepped up as Bayer’s CEO) began purchase negotiations, and bought Monsanto for an astounding $63 billion.

Before the purchase was even complete, Monsanto began to lose lawsuits over their products causing cancer.

As of today, Bayer/Monsanto has lost three cancer lawsuits and owes more than $190 million in damages. There are 18,400 similar lawsuits waiting for their day in court in the U.S., with more being added daily.

Not surprisingly, Bayer’s stock plummetted in the year following what amounts to a 63 billion dollar impulse buy. Stockholders are understandably furious over the acquisition and resulting asset losses. During April’s shareholder meeting, the top management of the company received a majority vote of disapproval over the company’s business practices for the year.

Just how bad of a deal was the purchase of Monsanto?

Bayer lost a whopping 46.6 percent of its stock value in year following its purchase of Monsanto.

That means that stockholders lost nearly half of their investment, and there is no good news on the horizon for Bayer as the lawsuits continue to pile up and the public becomes increasingly aware of Monsanto’s dirty dealings, cover-ups, and corporate greed.

To put this into perspective, in the year following Bank of America’s purchase of Countrywide Financial (a debacle that began a chain of infamous lawsuits, bail-outs and policy changes) it saw a stock drop of $44.6 percent… a full 2 percentage points less than the drop in Bayer’s stock.

Where does that leave Bayer?

The company is holding to Monsanto’s position that glyphosate is not harmful, despite mounting evidence to the contrary. In the meantime, they face lawsuits not just in America but in other countries around the globe, and are in the spotlight over a “hit list” kept by Monsanto that contained names of individuals and organizations that were outspoken against the company’s products and policies.

There is no foreseeable end to the trouble Bayer has purchased, and shareholders have every right to be furious.

Bayer itself has a past they’d rather not remember, having been a manufacturer of heroin-based children’s cough syrup in the early 1900’s, a chemical warfare giant in 1925, and later becoming part of the infamous IG Farben group…Nazi sympathizers who used slave labor in concentration camps during WWII.

Most Americans are unaware of Bayer’s history, and know it only as the company that invented aspirin. The company itself may not warrant sympathy, but Bayer has created a headache for its shareholders that no amount of aspirin is going to cure.<<

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#2 Sep 01, 2019 9:10 am

Slice
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Re: Share holders in Bayer catch cold

I am sure that Bayer, will rebound. Masanto was huge in chemicals and other stuff.  The weed killer is ah money maker, they will rebrand it and continue making monies.

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#3 Sep 01, 2019 7:32 pm

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Re: Share holders in Bayer catch cold

Slice wrote:

I am sure that Bayer, will rebound. Masanto was huge in chemicals and other stuff.  The weed killer is ah money maker, they will rebrand it and continue making monies.

You were in the Islands too long dude, you were not in touch with the World.

Monsanto WAS a money maker, now it is a money pit, and going to become more so as eventually even Iowans will wake up and smell the coffee, and when they do it's mega law suits on top of the thousands already in the pipeline. Just like the Pharma company that sold its shares to avoid the expense of the opioid problem, billions are going to be lost.  Hope you don't have pharma in your 401K.

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#4 Sep 02, 2019 12:00 am

houston
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Re: Share holders in Bayer catch cold

Bayer, that's one of those Nazi outfits that made their fortune during WW2.
Much like Volkswagen, Thysenkrupp, Siemens....

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#5 Sep 02, 2019 8:24 am

Slice
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Re: Share holders in Bayer catch cold

Bayer now have ah huge hold in the American market.  They make chemicals that America craves and will not go belly up.  Yes rough times ahead, but will recover. I wish they close down, but that is not reality, they will come back.

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#6 Sep 02, 2019 6:05 pm

houston
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Re: Share holders in Bayer catch cold

Share holders of mega corporations that obtained wealth with blood money can easily catch a cold. Getting a bit off track, but I think Poland has a pretty good grievance.

https://nationalpost.com/news/world/ger … ak-of-wwii

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#7 Sep 02, 2019 8:16 pm

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Re: Share holders in Bayer catch cold

houston wrote:

Share holders of mega corporations that obtained wealth with blood money can easily catch a cold. Getting a bit off track, but I think Poland has a pretty good grievance.

https://nationalpost.com/news/world/ger … ak-of-wwii

Why not start a new thread instead of diluting an existing one?

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