The managing board of Bayer (D-51368 Leverkusen; www.bayer.com) has decided to spin off its new chemicals and commodity-end polymers subsidiary, Lanxess (www.lanxess.com), to the group´s existing shareholders rather than risk an initial public offering (ipo). The paper will be listed separately on stock exchanges at the beginning of 2005 if the plans are approved at an extraordinary general meeting scheduled for mid-November.

“In the current stock market climate, a spin-off is the best route to a listing for Lanxess,” said Bayer CEO Werner Wenning. He added that Lanxess´ business is currently developing “in line with expectations.” For the first quarter, the company, which began separate operation on 1 July 2004, reported sales of EUR 1.48 bn and EBIT of EUR 75m.