Bayer Chairman Werner Wenning declared, “The proposed takeover of Schering is in line with our strategic objective of further growing our health care business.” But the fact is that this merger makes extremely less financial sense for Bayer, lesser than it did for Merck. With a ridiculously high P/E multiple of 27 (compared to Bayer’s P/E multiple of 15.4, and Schering’s 20.6 – based on prices before the Merck offer), the offered price is irrationally high.
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Source IIPM-Editorial,2006
For Complete IIPM-Article, Click IIPM-News Centre
Source IIPM-Editorial,2006
