Log in
Forgot password ?
Become a member for free
Sign up
Sign up
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Xetra  >  Covestro    1COV   DE0006062144

Mes dernières consult.
Most popular
News SummaryMost relevantAll newsSector newsTweets

Covestro Shares Nosedive After Bayer Reduces Stake

share with twitter share with LinkedIn share with facebook
share via e-mail
03/01/2017 | 09:44am CEST

By Sarah Sloat

Shares in Covestro AG tumbled early Wednesday after Bayer AG placed a Covestro stake worth almost 1.5 billion euros ($1.59 billion) ahead of its planned acquisition of Monsanto Co.

Bayer sold 22 million shares at EUR66.50 to institutional investors and retains a majority stake of 53.3% in the plastics company, it said. Prior to the placement it held 64.2% in Covestro, listed in Germany's MDAX index of mid-cap companies.

Covestro shares dropped 8.5% at the open to EUR65.00, compared with Tuesday's EUR71.07 close. Bayer gained 1.2% to EUR105.00 within the first minutes of trading.

Bayer is in the midst of financing its $57 billion acquisition of U.S. seed company Monsanto, which it intends to pay for in cash. Last week, Chief Financial Officer Johannes Dietsch told The Wall Street Journal that Bayer would stick to its plan to raise $19 billion in equity before moving on to a rights and bond issue.

Although the Covestro placement will help Bayer finance Monsanto, the proceeds are "a drop in the bucket," a trader said.

As previously announced, Bayer said it intends to sell off its Covestro holding entirely in the coming years. It took the opportunity to place the share block at this time because of favorable market conditions and the Covestro share's appreciation since its listing, Bayer said. Compared with Tuesday's closing price, Covestro's share price almost tripled since its October 2015 listing at EUR24 per share.

Bayer spun off Covestro, formerly Bayer Material Science, in an initial public offering in 2015. Covestro employed 15,600 people in 2016 and had sales of about EUR11.9 billion.

-Write to Sarah Sloat at [email protected]

share with twitter share with LinkedIn share with facebook
share via e-mail
Latest news on COVESTRO
09/22DJCorrection to Sept. 7 Harvey Rebuilding Article
09/22 PREMIERE AT SOLAR CAR RACE IN AUSTRA : First automotive refinish coating with bi..
09/21 COVESTRO AT COMPAMED 2017, NOVEMBER : Competent partner for medical technology
09/19 COVESTRO : Lucore to Keynote on Social Purpose at 2017 NGO Expo During Climate W..
09/18 FIRST PLACE IN GLOBAL RANKING : Covestro named ICIS Company of the Year
09/15 BAYER : places 9.4 percent stake in Covestro
09/15 BAYER : further reduces holding in Covestro
09/14 COVESTRO : U.S. Patents Awarded to Inventors in District of Columbia (Sept. 14)
09/14 TWELVE YOUNG TALENTS IN FINAL ROUND : Finalists chosen for Young Champions of t..
09/13 Apple suppliers dent European shares as rally flags
More news
News from SeekingAlpha
08/29 COVESTRO HAS A LUXURY PROBLEM : Are Special Dividends Around The Corner?
06/30 Covestro AG (CVVTF) Investor Presentation - Slideshow
06/12 Reports Of The Demise Of Chemical Innovation Are Greatly Exaggerated
Financials (€)
Sales 2017 13 620 M
EBIT 2017 2 192 M
Net income 2017 1 389 M
Debt 2017 1 001 M
Yield 2017 2,63%
P/E ratio 2017 10,32
P/E ratio 2018 12,31
EV / Sales 2017 1,14x
EV / Sales 2018 1,08x
Capitalization 14 489 M
Duration : Period :
Covestro Technical Analysis Chart | 1COV | DE0006062144 | 4-Traders
Technical analysis trends COVESTRO
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus OUTPERFORM
Number of Analysts 22
Average target price 74,3 €
Spread / Average Target 3,9%
EPS Revisions
Patrick Webster Thomas Chief Executive & Financial Officer
Richard Pott Chairman-Supervisory Board
Klaus Schäfer Chief Technology Officer
Petra Kronen Vice Chairman-Supervisory Board
Thomas Fischer Member-Supervisory Board
Sector and Competitors
1st jan.Capitalization (M$)
COVESTRO9.44%17 316
LG CHEM LTD--.--%23 027
DAICEL CORP5.17%4 255