Bayer Agrees to Increase Payout for Ex-Schering Shareholders

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Bayer AG settled two court cases filed by former shareholders of Schering AG over how much they were entitled to receive in the 17 billion-euro ($19.5 billion) takeover.

Minority investors will get an additional 19.02 euros per share to the 98.98 euros they received under proceedings that Bayer used to force them to sell. In the second deal, Bayer will pay some shareholders who tendered their stock for the 89.36 euros offered under a so-called domination agreement Bayer used at the time, get an extra 28.64 euros.

The settlements, at separate courts in Berlin Tuesday, price the Schering stock at 118 euros. Both groups, which held about 7.2 million shares, will also get interest.

“It took us one and a half years to negotiate this with Bayer and I think we reached a good result for all sides.” said Peter Dreier, of Dreier Riedel Rechtsanwaelte, who represented some of the plaintiffs. “We’re very happy with the outcome.”

Christian Hartel, a spokesman for Leverkusen, Germany-based Bayer, said the settlements conclude the litigation.

The settlements come two years after the group of shareholders who had voluntarily tendered their shares ago won a ruling from a Berlin court increasing the price by 35.29 euros to a total of 124.65 euros.

Bayer fought off another German drug and chemical maker, Merck KGaA, to acquire Schering. The deal formed Germany’s biggest health-care company and added a palette of top-selling drugs to Bayer’s portfolio, including the contraceptives Yaz and Yasmin and multiple sclerosis therapy Betaferon. The deal was complete on Dec. 29, 2006, according to data compiled by Bloomberg.

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