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Covestro parent Bayer non-committal on any sale to industry peer
February 22, 2017 / 10:53 AM / 8 months ago

Covestro parent Bayer non-committal on any sale to industry peer

FRANKFURT, Feb 22 (Reuters) - Bayer said that various ways to divest its 64 percent stake in plastics subsidiary Covestro were on the cards, when asked to comment on the possibility of a sale to an industry peer versus placing shares on the open stock market.

“We have said we plan to fully divest the stake over the medium term, without speaking about the modalities. As to how that will play out, there are many ways. Covestro is a highly attractive company and that is now also reflected in the market value,” Bayer Chief Executive Werner Baumann told a news conference following the publication of 2016 results.

Bayer has previously shown a tendency to sell blocks of shares in Covestro on the open market, which would increase the free float.

Shares in Covestro, a maker of transparent plastics, foam chemicals and coatings ingredients, are trading at around 70 euros ($73.5) apiece, well above the offer price of 24 euros at Covestro’s stock market listing in October. ($1 = 0.9522 euros) (Reporting by Ludwig Burger; Editing by Maria Sheahan)

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