Chris Hughes, Columnist

Roundup Cancer Lawsuits: Is a Settlement Coming?

For Bayer, settling litigation linked to the weedkiller makes sense. But it would be just a start.

June 27, 2019 at 11:44 AM UTC

Chris Hughes is a Bloomberg Opinion columnist covering deals. Previously, he worked for Reuters Breakingviews, the Financial Times and the Independent newspaper.

Lurking in garden sheds around the world.
Photographer: Daniel Acker/Bloomberg

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Activist investor Elliott Management Corp. wants Bayer AG to settle thousands of lawsuits claiming the pharma group’s Roundup weedkiller causes cancer. Remove the uncertainty caused by the litigation, and 30 billion euros ($34 billion) of value could be released, Elliott argues. That is easier said than done.

If Bayer traded at multiple of 15 times estimated earnings, in line with its peers, its market capitalization would be closer to 95 billion euros rather than its 56 billion euros today. That estimate is even higher than the company’s market value was in August just before the first adverse ruling against Roundup.