Extraordinary Stockholders' Meeting of Schering AG in Berlin
13 September 2006 - 12:32PM
PR Newswire (US)
Erlen: Very Good Prospects for Bayer Schering Pharma BERLIN,
September 13 /PRNewswire-FirstCall/ -- The stockholders of Schering
AG (NYSE:SHR) have assembled today, Wednesday, in Berlin for an
Extraordinary Stockholders' Meeting, at which outgoing Management
Board Chairman Dr. Hubertus Erlen has appealed for their consent to
the domination and profit and loss transfer agreement with Bayer
subsidiary Dritte BV GmbH. Also on the agenda are elections to the
Supervisory Board to reflect Schering's new ownership structure.
Bayer holds more than 95 percent of the outstanding shares of the
Berlin-based pharmaceutical company. The stockholders will also
resolve on the announced renaming of Schering AG to "Bayer Schering
Pharma Aktiengesellschaft." Erlen emphasized that Schering's
business is very healthy and performing well after 155 successful
years of independence. At the same time, he said, he was convinced
that the recommendation to the stockholders to accept Bayer's
public takeover offer had been the right one. "By merging the
pharmaceuticals businesses of Bayer and Schering, we will create a
new global company with very good prospects for the future," Erlen
added. The domination and profit and loss agreement to be voted on
is intended to create the basis for realizing commercial, legal and
tax advantages and ensuring that outside stockholders are fairly
treated. The agreement is also designed to enable the integration
of Schering into the Bayer Group to be driven forward, leveraging
synergies of EUR 700 million annually. "Fair offer to Schering
stockholders" The agreement includes a fair offer to Schering's
outside stockholders, Erlen said. Dritte BV GmbH is offering to
acquire their shares for one-time cash compensation of EUR 89 per
share. The offer will take effect on the day the agreement is
entered in the commercial register. The obligation thereunder
applies for a limited period of two months from the announcement of
the agreement's entry in the register. The filing of a legal
proceeding concerning the adequacy of the amount of the offer
consideration would extend the deadline. Stockholders who do not
sell their Schering shares will receive an annual net guaranteed
dividend of EUR 3.62 per share in lieu of an ordinary dividend.
"This is roughly three times as much as our last dividend payment,"
Erlen pointed out. This guaranteed dividend would first be paid for
the fiscal year in which the agreement becomes effective by being
entered in the commercial register. If the agreement is entered
this year, therefore, the guaranteed dividend could already be paid
for 2006, although any ordinary dividend declared for fiscal 2006
would be deducted. The following candidates were proposed to the
Extraordinary Stockholders' Meeting for election to the Schering
Supervisory Board: Professor Friedrich Berschauer, Management Board
Chairman of Bayer CropScience AG; Dr. Hubertus Erlen, Management
Board Chairman of Schering AG; Dr. Roland Hartwig, General Counsel
of Bayer AG; Klaus Kuhn, Management Board member of Bayer AG; Achim
Noack, Managing Director of Bayer Technology Services GmbH; Werner
Wenning, Management Board Chairman of Bayer AG. Current Supervisory
Board members Dr. Karl-Hermann Baumann and Dr. Reiner Hagemann will
remain in office. However, Dr. Giuseppe Vita, Dr. Mathias Dopfner,
Professor John A. Dormandy, Professor Dieter Hinzen, Dr. h.c.
Martin Kohlhaussen and Detlef Olufs will resign with effect from
the end of the Extraordinary Stockholders' Meeting. It is intended
to propose Werner Wenning as Chairman of the new Supervisory Board
and Dr. Hubertus Erlen as one of the two vice chairmen. The
existing employee representatives will continue to serve on the
Schering Supervisory Board. New Schering Management Board to be
named on Thursday The day after the Extraordinary Stockholders'
Meeting, the newly elected Supervisory Board will appoint the new
Schering Board of Management. This is planned to comprise: Arthur
Higgins (Chairman), Management Board Chairman of Bayer HealthCare
AG; Werner Baumann, Management Board member of Bayer HealthCare AG;
Dr. Ulrich Kostlin, Management Board member of Schering AG; Dr.
Gunnar Riemann, Management Board member of Bayer HealthCare AG;
Prof. Marc Rubin, MD, Management Board member of Schering AG. The
remaining members of the present Schering Management Board - Dr.
Karin Dorrepaal, Professor Rainer Metternich and Dr. Jorg
Spiekerkotter - will resign their posts with effect from the end of
the Extraordinary Stockholders' Meeting, having chosen not to join
the new company. The stockholders will also vote on the company's
renaming from Schering Aktiengesellschaft to "Bayer Schering Pharma
Aktiengesellschaft." "This name signifies that Schering is now a
Bayer Group company, while at the same time preserving the
tradition-rich Schering name," Erlen explained. It is not planned
to file for registration of the corresponding amendment to the
Articles of Incorporation before December 1, 2006 to give the
company time to prepare for the activities connected with the
renaming. The change at first will affect only the company's name,
and thus does not yet involve its merger with the pharmaceuticals
business of Bayer HealthCare to form a single legal entity. It is,
however, planned to legally combine the two pharmaceuticals
businesses under the common umbrella of Bayer Schering Pharma AG,
headquartered in Berlin, although it has not yet been decided
exactly how and when this will take place. Erlen concluded his
address by thanking Schering employees for their tremendous
dedication: "You have done outstanding work, particularly in the
takeover situation over the past few months." On behalf of the
entire Management Board, Erlen thanked Schering's cooperation
partners in research and development, along with the stockholders,
for the trust they have placed in the company's management and
strategy. Important information from Bayer AG: This is neither an
offer to purchase nor a solicitation of an offer to sell shares or
American depositary shares of Schering AG. At the time of
commencement of the mandatory compensation offer, Dritte BV GmbH
will file a tender offer statement with the U.S. Securities and
Exchange Commission (SEC) with respect to the mandatory
compensation offer and Schering AG will file a
solicitation/recommendation statement on Schedule 14D-9 with the
SEC in respect of the mandatory compensation offer. Investors and
holders of shares and American depositary shares of Schering AG are
strongly advised to read the tender offer statement and other
relevant documents regarding the mandatory compensation offer filed
with the SEC when they become available because they will contain
important information. Investors and holders of shares and American
depositary shares of Schering AG will be able to receive these
documents when they become available free of charge at the SEC's
website (http://www.sec.gov/), or at the website
http://www.bayer.de/. This news release contains certain
forward-looking statements based on current assumptions and
forecasts made by Bayer Group management. Various known and unknown
risks, uncertainties and other factors could lead to material
differences between the actual future results, financial situation,
development or performance of the company and the estimates given
here. These factors include those discussed in our reports files
with the Frankfurt Stock Exchange and our reports filed with the
SEC (incl. on Form 20-F). Bayer AG and Dritte BV GmbH do not assume
any liability whatsoever to update these forward-looking statements
or to conform them to future events or developments. Important
information from Schering AG: Legal Instruction After the proposed
offer of cash compensation by Dritte BV GmbH, a wholly owned
subsidiary of Bayer Aktiengesellschaft, in connection with the
planned domination and profit and loss transfer agreement between
Dritte BV GmbH and Schering Aktiengesellschaft, is made available
to Schering Aktiengesellschaft shareholders, Schering
Aktiengesellschaft will file with the U.S. Securities and Exchange
Commission a solicitation/recommendation statement on Schedule
14D-9 with respect to the offer of cash compensation. Holders of
ordinary shares and American depositary shares of Schering
Aktiengesellschaft are advised to read such
solicitation/recommendation statement when it becomes available
because it will contain important information. Holders of ordinary
shares and American depositary shares of Schering
Aktiengesellschaft will be able to obtain such
solicitation/recommendation statement and other filed documents
when they become available free of charge at the U.S. Securities
and Exchange Commission's website (http://www.sec.gov/) and at
Schering Aktiengesellschaft's website (http://www.schering.de/).
Certain statements in this press release that are neither reported
financial results nor other historical information are
forward-looking statements, including but not limited to,
statements that are predictions of or indicate future events,
trends, plans or objectives. Undue reliance should not be placed on
such statements because, by their nature, they are subject to known
and unknown risks and uncertainties and can be affected by other
factors that could cause actual results and Schering AG's plans and
objectives to differ materially from those expressed or implied in
the forward-looking statements. Certain factors that may cause such
differences are discussed in our Form 20-F and Form 6-K reports
filed with the U.S. Securities and Exchange Commission. Schering AG
undertakes no obligation to update publicly or revise any of these
forward-looking statements, whether to reflect new information or
future events or circumstances or otherwise. Contact: Bayer AG:
Gunter Forneck, phone +49 214-30-50446 Email: Schering AG: Oliver
Renner, phone +49-30-468-12431 Email: Verena von Bassewitz, phone
+49-30-468-192206 Email: DATASOURCE: Schering AG CONTACT: Bayer AG:
Gunter Forneck, phone +49 214-30-50446, Email: ; Schering AG:
Oliver Renner, phone +49-30-468-12431, Email: . Verena von
Bassewitz, phone +49-30-468-192206, Email:
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