Bayer picks outsider Anderson as CEO after investor pressure By Reuters

BERLIN/FRANKFURT (Reuters) -Bayer bowed to investor pressure on Wednesday and named Bill Anderson, most recently head of Roche’s pharmaceuticals business, to take over from Werner Baumann as its CEO in June.

Anderson’s appointment, which takes effect from June 1, comes after mounting shareholder pressure to remove Baumann, who engineered Bayer (OTC:)’s troubled Monsanto (NYSE:) takeover, and install a new leader to revive the company’s share price.

News of the CEO change sent the German drugs-to-pesticides giant’s shares to their highest level in nearly eight months.

“We welcome the timely change at the top of Bayer and hope that the fresh perspective of an external candidate will provide new momentum for the strategy of the company,” said Ingo Speich, head of sustainability and corporate governance at Deka, a top-20 investor in Bayer.

Markus Manns of Union Investment, among Bayer’s 10 biggest shareholders, said Anderson was a “very good choice” who could provide the relief investors in the company have been waiting for.

Anderson will join Bayer as a management board member on April 1, it said, adding that Baumann will work closely with the 56-year-old to ensure a smooth transition before he retires from the drugmaker after 35 years at the end of May.

“Bill has an outstanding track record of building strong product pipelines and turning biotech breakthroughs into products,” Bayer Supervisory Board Chairman Norbert Winkeljohann said in a statement.

Shares in Bayer closed up 6% on the news of the new CEO, reaching the top of Frankfurt’s blue-chip index and hitting their highest level since June last year.

“Bill Anderson’s mission is clear: enable Bayer to realize its full potential and create sustainable value for our shareholders, farmers, patients, consumers, employees, and all stakeholders of the company,” Winkeljohann added.

Sources told Reuters earlier this week that activist investor Jeff Ubben had contacted fellow investors to drum up support for big changes at Bayer, including the swift replacement of Baumann.