FRANKFURT (AFX) – Hedge funds are buying into Schering AG, on the basis that a German law might allow them to get a higher price for their Schering stakes than the 86 eur per share offered by Bayer AG, the Financial Times reported.
Citing people familiar with the situation, the newspaper said that among the hedge funds involved is New York-based Paulson & Co, said to hold up to 3 pct of the German drugs maker.
Others include DE Shaw and Citadel, it said.
Bayer’s offer is contingent on a minimum acceptance rate of 75 pct of Schering’s shareholders, and once this has been achieved, it will start integration of the two companies while negotiating to compensate remaining shareholders.
