German chemicals and pharmaceuticals maker Bayer is extending the deadline for its takeover of Schering because shareholders have been slow to accept the offer.
A statement released by Bayer said the company is providing a two-week extension to the deadline for acceptance of its 86-euro-per-share bid. The new deadline is June 14.Schering shareholders have been reluctant to accept the offer as just 18.49 percent of shareholders had accepted so far. Bayer needs at least 75 percent of Schering's share capital for the takeover to become binding.
On top of the 18.49 percent, Schering's biggest shareholder, the insurance giant Allianz, has also committed to accepting Bayer's offer, the statement said.
Bayer launched an amicable takeover bid for Schering, a maker of contraceptive pills and fertility drugs, in March in an effort to fend off a bid by Merck, a rival drug maker. Merck's bid is considered a hostile takeover effort.
The Bayer deal values Schering at 16.5 billion euros.