D.E. Shaw takes $1 billion short bet on Bayer, regulatory filing shows

By Nell Mackenzie and Ludwig Burger

LONDON/FRANKFURT (Reuters) -Hedge fund D.E. Shaw took a 1.02 billion euro ($1.08 billion) short bet against Bayer (OTC:BAYRY) on Tuesday, a regulatory filing in Germany showed, following an earnings presentation that sent its shares to a 20-year low,

A short position reflects a view that the price of a financial asset will fall.

New York-based D.E. Shaw, one of the hedge fund industry’s biggest managers overseeing more than $60 billion in assets, declined to comment.

Bayer did not immediately comment.

Bayer warned on Tuesday that weak agricultural markets would be likely to cause further falls in next year’s earnings, after releasing a lower-then-expected quarterly adjusted profit.

The remarks presented by Chief Executive Bill Anderson sparked a sharp fall in the company’s shares and increased pressure on the CEO to deliver on his turnaround efforts.

Bayer shares fell to a new 20-year low on Wednesday closing the session 3.5% lower. On Tuesday, they fell as much as 15.8% from the previous day’s close.

($1 = 0.9444 euro)