Lanxess, Bayer make Euro336 million provision for anti-trust litigation

Leverkusen, Germany -- Bayer AG has announced it is making an extraordinary provision of around Euro 275 million in the fourth quarter 2005 to cover the costs of anti-trust settlements with plaintiffs in the United States. Under agreements made when Lanxess spun off from Bayer earlier this year, Lanxess will reimburse 30 percent of the total charges to Bayer. Lanxess will therefore make a Euro 61 million charge in the same quarter to cover payments to Bayer. Together, the companies are allowing Euro 336 million to cover likely payments.

In a statement, Bayer said it has "reached agreements in principle to settle a number of the civil antitrust actions claiming damages which are currently pending against it in the United States." The company referred to litigation in respect of anti-trust activities in the rubber and rubber chemicals sectors.

The company said, "the financial risk associated with the remaining actions is currently not quantifiable."But added, "Bayer expects that, in the course of the remaining governmental proceedings and civil actions, additional expenses will become necessary that may also be of material importance to the company. "

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Press statement from Bayer

Press statement from Lanxess