- Bayer, which bought Roundup manufacturer Monsanto last year, has reportedly offered $ 8 billion to settle thousands of cancer claims.
- Lawyers for consumers who claim glyphosate, the active ingredient in Roundup, caused their cancer, will have $ 10 billion, according to Bloomberg.
- However, broker Ken Feinberg told Reuters that the reported offer is "pure fiction."
- Bayer's share price has fallen by half since the acquisition of Monsanto on June 6, 2018.
Bayer's Monsanto parent company is said to offer a $ 8 billion deal to settle about 1
The offer is less than $ 10 billion requested by attorneys representing consumers who claim their cancers were caused by glyphosate, the active ingredient in Roundup, according to Bloomberg News, citing people familiar with the negotiations. It can take months to reach an agreement, and there is no assurance that the pages will come to an agreement, the publication added.
However, a report in the Reuters settlement offer rejected, with broker Ken Feinberg saying that Bayer has not offered to pay billions of dollars to settle the claims.
"Bayer has not proposed to pay $ 8 billion to settle the entire United States Roundup cancer claims. Such a statement is pure fiction," Feinberg told Reuters Friday. "Compensation has not even been discussed in the global mediation discussions."
Bayer did not return a request for comment. The prospects for a settlement cheered, and Bayer shares rose 4.7% on Friday.
"$ 8 billion would be lower than most analysts predict and many investors fear," Markus Mayer, Baader Helvea analyst, told Bloomberg.
Glyphosate faces a unique test both in the courtroom and in the US home amid growing concern for the safety of the chemical. Environmental group tests are raising consumer concerns, such as a recent study that found that 21 oat-based cereals and snack products, including Cheerios, contain traces of glyphosate.
Since Bayer bought Roundup's manufacturer Monsanto last year, the German chemical giant has lost three high-profile lawsuits over the chemical's possible link to cancer.
Investors have fled from Bayer over concerns about potential liabilities and halving the company's stock price since June 6, 2018, purchase of Monsanto. In its latest annual report, Bayer said it expects more lawsuits to emerge.