Shares of German drug maker and chemical concern Bayer ( Germany: BAY ) were boosted by about 3% in early trading today on word that Pfizer (PFE) may be interested in acquiring the company for its prescription drug business and pipeline. Shares of Bayer are currently valued at a market cap of about $59 billion US Dollars, which is less than half of the $129 billion market value of Pfizer. Such a deal would likely involve a break-up of Bayer, since the Company derives 31% of its sales from pharmaceuticals, 13% from consumer healthcare, 22% from agricultural sciences, and 30% from chemicals. Since Pfizer sold its consumer healthcare division to Johnson & Johnson (JNJ), it would be most interested in Bayer's prescription drug business and pipeline ahead of expected generic competition for the world's best selling drug Lipitor in late 2011. Since I first wrote about Pfizer in mid-July, the shares have risen by about 10%, but are still trading close to multi-year lows with a dividend yield near 7%.
$19.05 (09/09/08)
