Bayer's Stock Decline#
Bayer's shares experienced a decline of more than 3% on Tuesday, following a report from Bloomberg. The report indicated that Inclusive Capital Partners, an investment firm led by activist investor Jeff Ubben, is looking to sell a portion of its stake in the German agriculture and healthcare company.
Details of the Stake Sale#
Inclusive Capital is offering approximately 8.5 million shares, which represents about 0.9% of Bayer’s total share capital. Based on the closing price from the previous day, this stake is valued at around 327 million euros, or about $378.67 million. A local trader noted that this planned sale might suggest that Ubben believes the stock has reached its potential for growth.
Background on Inclusive Capital#
Inclusive Capital began building its position in Bayer earlier this year and was influential in the departure of former CEO Werner Baumann. Ubben has been a notable activist investor advocating for significant changes within the company, including discussions about a possible breakup of Bayer.
Bayer's Earnings Outlook#
Earlier this month, Bayer provided its earnings forecast for 2026, which fell short of market expectations. The company is grappling with ongoing litigation costs and a substantial debt load. Bayer projected an EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) before special items to be between 9.1 billion euros and 9.6 billion euros. This upper limit is slightly below the consensus estimate of 9.67 billion euros, which was also reported on the company’s website.