The activist investor Inclusive Capital has completed the sale of its share package in the Leverkusen DAX group.
• Placement of around 8.5 million shares by JPMorgan Chase
• Activist investor Jeff Ubben previously pushed for the management change at the top of the company
• Bayer continues to struggle with high debts and extensive legal risks in the USA
Placement on the capital market: JPMorgan Chase is probably orchestrating the sale of Bayer shares
The activist investor Inclusive Capital Partners has separated from its involvement with Bayer AG. As can be seen from the sales conditions now available, the investment company founded by Jeff Ubben sold around 8.5 million shares, which corresponds to a share of 0.9 percent. The placement was carried out by JPMorgan Chase at a price of 37.45 euros each, resulting in total proceeds of 318 million euros. Since the share closed at 38.47 euros on Monday, the sale took place at a corresponding discount.
Role of Jeff Ubben: From driver to dropout
Inclusive Capital joined the traditional German company at the beginning of 2023 with high ambitions and was seen as a key driver for the early departure of former CEO Werner Baumann and the appointment of an external successor. Jeff Ubben, considered one of Wall Street’s most high-profile activist investors according to Reuters, repeatedly called for a deep strategic realignment and pushed for a divisional split. Although Bayer appointed Ubben to the supervisory board in 2024 with a mandate until 2028, the withdrawal had been apparent for some time. The Wall Street Journal reported as early as 2023 that Ubben was closing his social investing-focused firm and beginning to wind down the funds and return capital to limited partners.
Challenges for Bayer boss Bill Anderson: debt burden and US legal disputes
Bill Anderson’s strategic decision to pause the review of a demerger met with a mixed response on the capital market. While the corporate restructuring under the slogan “Dynamic Shared Ownership” is intended to reduce bureaucracy, the high liabilities and the ongoing legal disputes over weed killers containing glyphosate in the USA continue to place a heavy burden on the balance sheet. The company recently gave a profit forecast for 2026 that fell well short of analysts’ expectations. In this difficult environment, Inclusive Capital has now pulled the ripcord, as a rapid increase in value through structural changes does not currently appear to be foreseeable.
Reaction on the stock market: Bayer price under pressure
The news about the planned share sale by a prominent major investor immediately weighed on the mood for Bayer’s shares. In XETRA trading on Tuesday, the share was ultimately quoted at a discount of 1.33 percent at 37.96 euros.
Market participants are likely to interpret the move as a signal of a lack of confidence in a timely recovery of the share price.
Alexandra Hesse, Benedict Kurschat, Claudia Stephan, Bettina Schneider, editorial team finanzen.net
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