LEVERKUSEN, Germany (July 16)—Bayer A.G. has decided to spin off its Lanxess GmbH subsidiary to its own shareholders rather than via an initial public offering—its other stated option for the chemicals, rubber and plastics unit.
The spinoff, which will see Lanxess listed separately on the Frankfurt stock exchange at the start of 2005, is subject to approval of an extraordinary stockholders' meeting in mid-November, Bayer said. The group will provide full details of the spinoff in the notice of the meeting.
"In the current stock market climate, a spinoff to Bayer stockholders is the best route to a listing for Lanxess," Bayer CEO Werner Wenning said in a prepared statement. "That way the present owners of Bayer's assets automatically remain the owners of the assets being transferred to Lanxess."