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news.Bayer AG has moved a step closer to completing its E16.5 billion acquisition of German rival Schering AG with the announcement that Schering's largest stakeholder Allianz AG has tendered its shareholding, which amounts to about 11% of the company's capital stock.
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Bayer previously extended the timeframe on its E86 cash per share offer for Schering by an extra two weeks in order to allow it extra time to acquire the 75% of shares required for it to complete the deal.
However, Bayer also warned that German law does not allow for any further extension. The minimum acceptance threshold of 75% must now be reached by June 14, 2006, otherwise the offer will lapse.
The confirmation of the tendering of shares by Allianz has now brought the acceptance rate up to 39.21% and gave Bayer hope that other investors would follow suit.
“We’re pleased that Schering’s largest stockholder has accepted our attractive offer. This also serves as a signal to the other stockholders,” commented Bayer management board chairman Werner Wenning. “We are convinced that the acquisition of Schering will be successfully completed.”