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Monday, March 21, 2011

SCENARIOS-Bayer's M&A prospects: Big bang or bolt-on?

Bayer's (BAYGn.DE) Chief Executive Marijn Dekkers came with M&A credentials from his previous job last year and investors have been looking for clues where he plans to take the 147 year-old German drugmaker. He has said a 17 billion euro ($23.8 billion) takeover deal could be financed, eyeing healthcare and genetically modified seeds as growth areas, and that Bayer's plastics and foams could end up on the block to fund a transformational transaction. [ID:nLDE71R08Q] Bayer will host its annual "Meet Management" analyst conference at its Leverkusen headquarters on Wednesday, and Dekker's M&A strategy will be high on analysts' question lists. The following explores the likelihood of Bayer targeting a transformational deal versus seeking a number of smaller acquisitions and licensing deals.

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