The annual general meeting of Bayer AG on April 25, 2025, was marked by intense criticism from shareholders. The central point of criticism was the decline in Bayer’s stock prices, which results from the billion-dollar legal risks in the USA. These risks are primarily due to the glyphosate lawsuits against Bayer following the acquisition of Monsanto, which have brought significant financial burdens and a loss of trust from investors.
Shareholder Criticism and Corporate Governance
Many shareholders expressed disappointment over the ongoing problems with the glyphosate lawsuits, which continue to heavily burden the company. CEO Bill Anderson openly discussed at the meeting a potential marketing halt of glyphosate, should the “litigation industry” force Bayer to do so. These statements highlight the extent of the problem and contribute to uncertainty among investors.
Capital Increase in Response to Legal Disputes
To create financial leeway and particularly to enable a large-scale settlement to resolve the legal disputes, Bayer asked its shareholders for approval to issue additional shares. This could raise up to eight billion euros in the short term and is intended to help maintain the credit rating as well as reduce further debts. The capital increase was approved despite concerns—many shareholders see this as a desperate measure with hope for a solution to the protracted problem.
Importance for Investors
These developments are particularly relevant for investors: The uncertainty surrounding glyphosate not only undermines trust in corporate governance but also negatively impacts future stock performance. The prospect of possible settlements or even a marketing halt of glyphosate could have fundamental long-term consequences for Bayer’s business area. At the same time, a capital increase often means the dilution of existing stock values, which can exert short-term pressure on the price.
In summary, Bayer shows a difficult tension between necessary financial measures to manage large legal risks and the resulting loss of trust from many shareholders. How successful these strategies will be and how quickly the company can recover remains uncertain given these challenges.
Sources: Tagesschau, Bayer Invitation AG 2025, ZDF Economic News