Essay: Why breaking up companies causes more damage than expected – Economy

Essay: Why breaking up companies causes more damage than expected – Economy


The drive by activist investors to split up companies shows no sign of abating. But the supposed panacea for higher share prices is a myth and also contributes to division in society.

They just don’t give up. Hardly comes one Pursue stumbling, vultures immediately arrive who want to profit from the crisis. This is what is currently happening at the Bayer Group. Two British investor groups are pushing hard to break up this icon of German industry. The respected pharmaceutical company from Leverkusen is suffering from high debts, which arose after the management, poorly prepared, bought the American agricultural chemical company Monsanto in 2018 and incurred horror losses. The share price has lost around 80 percent since the takeover. And now the specialists for patent solutions come and recommend the dismantling of this company founded in 1863. In this way, the pressing debts could be quickly reduced. The individual parts of the group are worth more than the entire company. However, CEO Bill Anderson rejects what sounds like a great solution. At the annual press conference on March 5th, he wants to reveal exactly what he plans to do with Bayer.



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