Bayer AG intends to file for delisting of its American Depositary Shares (ADSs) from the New York Stock Exchange (NYSE). It is also planned to deregister with the U.S. Securities and Exchange Commission (SEC) and thereby terminate the respective reporting obligations. The company's Board of Management made this decision yesterday and has notified the NYSE accordingly. Bayer plans for trading in its ADSs on the NYSE to cease at the end of September or beginning of October 2007.
"Bayer will maintain a high level of transparency in its reporting and thus continue to satisfy the requirements of international investors. Delisting and deregistration will enable us to achieve this with fewer formalities and therefore at lower cost," explained Klaus Kühn, CFO of the Bayer Group. The company expects its withdrawal from the NYSE to result in annual savings of some EUR 15 million. Bayer intends to maintain its ADS program as a "level one" program, so that U.S. investors may continue to hold their securities and trade them in the U.S. over-the-counter market.
The application to terminate Bayer's listing on the NYSE is to be submitted on September 17. Delisting would normally become effective ten days thereafter. Bayer also plans to file for deregistration with the SEC, resulting in termination of its reporting obligations under the Securities Exchange Act of 1934. Bayer reserves the right to delay or withdraw the filings for any reason prior to their effectiveness.
Bayer has applied internationally acknowledged accounting and reporting standards since 1994, currently in the form of the International Financial Reporting Standards (IFRS). The company remains committed to maintaining an open and direct dialog with institutional investors and analysts in the United States.
For more information go to www.bayer.com