- Bayer, which bought Roundup maker Monsanto last year, reportedly offered $ 8 billion to Bloomberg to cover thousands of cancers.
- But mediator Ken Feinberg told Reuters that the offer was "pure fiction."
- Bayer's share price has fallen by half since the acquisition of Monsanto on June 6, 2018.
Monsanto parent company Bayer is to offer an $ 8 billion deal to settle approximately 18,000 claims that its weed killer causes Roundup cancer. Bayer stock was optimistic ahead of Friday's trading session that an agreement would put an end to uncertainty over the chemical company's liabilities.
The offer is among the $ 1
However, a report in Reuters dismissed the settlement bid and mediator Ken Feinberg said Bayer had not offered to pay billions of dollars to settle the claims.
"Bayer has not proposed to pay $ 8 billion for the entire US summary claims that such a statement is pure fiction," said Feinberg Reuters Friday. "The compensation has not even been discussed in the global negotiation discussions."
Bayer did not return a request for comment. The prospect of a settlement cheered investors, allowing Bayer shares to gain 4.7% on Friday.
"$ 8 billion would be lower than most analysts forecast and many investors fear it," said Markus Mayer, Baader Helvea analyst, to Bloomberg.
Glyphosate is undergoing unprecedented testing in both the courtroom and homes of the Americas due to growing concern about the safety of the chemical. Environmental groups' testing is fueling consumer concerns, as a recent study found that 21 oat-based cereal and snack products, including Cheerios, contain traces of glyphosate.
Since Bayer bought the manufacturer Monsanto from Roundup last year, the German chemical company has lost three high-profile lawsuits for possible cancer.
Investors have fled from Bayer because they had concerns about potential liabilities and the company's shares cut in half since June 6, 2018, purchase of Monsanto. Bayer expects further complaints in its last annual report.