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Exclusive: U.S. waters down demand China ax subsidies in push for trade deal – sources

U.S and China trade talks in Beijing
Chinese staffers adjust U.S. and Chinese flags before the opening session of trade negotiations between U.S. and Chinese trade representatives at the Diaoyutai State Guesthouse in Beijing, Thursday, Feb. 14, 2019. Mark Schiefelbein/Pool via REUTERS/File Photo

April 15, 2019

By Alexandra Alper, Chris Prentice and Michael Martina

WASHINGTON/BEIJING (Reuters) – U.S. negotiators have tempered demands that China curb industrial subsidies as a condition for a trade deal after strong resistance from Beijing, according to two sources briefed on discussions, marking a retreat on a core U.S. objective for the trade talks.

The world’s two biggest economies are nine months into a trade war that has cost billions of dollars, roiled financial markets and upended supply chains.

U.S. President Donald Trump’s administration has slapped tariffs on $250 billion worth of imports of Chinese goods to press demands for an end to policies – including industrial subsidies – that Washington says hurt U.S. companies competing with Chinese firms. China responded with its own tit-for-tat tariffs on U.S. goods.

The issue of industrial subsidies is thorny because they are intertwined with the Chinese government’s industrial policy. Beijing grants subsidies and tax breaks to state-owned firms and to sectors seen as strategic for long-term development. Chinese President Xi Jinping has strengthened the state’s role in parts of the economy.

In the push to secure a deal in the next month or so, U.S. negotiators have become resigned to securing less than they would like on curbing those subsidies and are focused instead on other areas where they consider demands are more achievable, the sources said.

Those include ending forced technology transfers, improving intellectual property protection and widening access to China’s markets, the sources said. China has already given ground on those issues.

“It’s not that there won’t be some language on it, but it is not going to be very detailed or specific,” one source familiar with the talks said in reference to the subsidies issue.

A representative for the White House referred Reuters to the U.S. Trade Representative’s Office, which did not respond to a request for comment.

“If U.S. negotiators define success as changing the way China’s economy operates, that will never happen,” said the other source with knowledge of the trade talks.

“A deal that makes Xi look weak is not a worthwhile deal for Xi. Whatever deal we get, it’s going to be better than what we’ve had, and it’s not going to be sufficient for some people. But that’s politics,” that source said.

China pledged earlier this year to end market-distorting subsidies for its domestic industries but offered no details on how it would achieve that goal, three people familiar with the trade talks told Reuters in February.

MIXED MESSAGES

One of the key sticking points in the negotiations is the removal of the $250 billion in U.S. tariffs. It is broadly expected in the trade community that U.S. negotiators want to keep some tariffs on Chinese goods, which Washington sees as retaliation for the years of damage done to its economy by Beijing’s unfair trade practices.

The role of the state firms may benefit the United States in another part of the trade deal. The Trump administration wants China to make big-ticket purchases of over a trillion dollars of U.S. goods in the next six years to reduce its trade surplus. The companies likely to make the purchases are the state-run firms, both sources said.

“The purchasing, for example, reinforces the role of the state sector because the purchasing is all being done through state enterprises,” one of the sources said.

Another point of contention between the two countries, telecommunications, may drive China to increase the state’s role rather than reduce it, the source said.

Pressure from the United States on allies to reduce cooperation with Chinese telecommunications champions such as Huawei Technologies could push the government into raising state support to develop technology at home.

DECADES OF FRICTION

Subsidies and tax breaks have been a source of friction between the two countries for years.

Washington says Beijing has failed to comply with its World Trade Organization obligations on subsidies that affect both imports and exports.

China has taken steps to address some U.S. concerns in cases brought before the WTO. It has also begun to publicly downplay its push to dominate the future of high-tech industries under its “Made in China 2025” policy, although few expect it to jettison those ambitions.

But the USTR complains of a catalog of other subsidies and supports, including preferential access to capital and land.

The United States says China has failed to disclose subsidies as required by the WTO. Washington has detailed more than 500 different subsidies it says China applies in notifications to the WTO.

The scope of China’s local government subsidy programs is largely unknown, and even the Chinese negotiators have said in recent discussions they do not know the details of all those programs.

“China continues to shield massive sub-central government subsidies from the scrutiny of WTO members,” the USTR said in a February 2019 report to Congress on China’s WTO compliance.

(Reporting by Alexandra Alper and Chris Prentice in Washington and Michael Martina in Beijing; Editing by Chris Sanders and Peter Cooney)

Source: OANN

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US sends 2 warships through Taiwan Strait ahead of China trade talks

Two American warships sailed through the Taiwan Strait on Sunday to send a message to the Chinese government ahead of high-level trade talks between the two nations.

The U.S. Navy guided-missile destroyer Curtis Wilbur and U.S. Coast Guard cutter Bertholf sailed through the strait, a body of water separating Taiwan from mainland China that is approximately 100 miles wide and is considered a hot spot for any potential conflict.

Cmdr. Clayton Doss, a spokesman for the Navy 7th Fleet, said in a statement that the ships had conducted a "routine Taiwan Strait transit March 24-25 [local time] in accordance with international law. The ships' transit through the Taiwan Strait demonstrates the U.S. commitment to a free and open Indo-Pacific."

The transit marked the third time in three months that the U.S. sailed warships through the strait, which is officially considered international waters. However, China has considered Taiwan its own territory to be brought under its control -- by force if needed -- and has monitored foreign military activity in the waterway closely.

Beijing has considered control over Taiwan a matter of national pride, as well as a key to its access to the Pacific, the South China Sea and elsewhere. Taiwan President Tsai Ing-wen warned last month that the military threat from China was increasing "every day."

APPLE'S TIM COOK, IN CHINA, SAYS HE'S BULLISH ON GLOBAL ECONOMY

"The Chinese side has been closely monitoring the U.S. warships sailing through the Taiwan Strait," Foreign Ministry spokesman Geng Shuang said Monday. "We are well aware of the whole process. We have also made complaints with the U.S."

Geng said the U.S. needed to abide by previous commitments to China "so as not to avoid damage to China-U.S. relations and peace and stability of the Taiwan Strait."

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The transit came days before a high-level American delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer are scheduled to arrive in China for the eighth round of trade negotiations aimed at resolving a long-running dispute.

The trade dispute escalated last year after the U.S. made several complaints, including that China was stealing U.S. trade secrets and was forcing companies to give them technology to access its market. Trump imposed tariffs on $250 billion of Chinese imports, about half what the United States buys from that country. China retaliated with tariffs on about $110 billion of U.S. items.

The Associated Press contributed to this report.

Source: Fox News World

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Elliott takes 6.1 percent stake in Dutch Intertrust

Paul Singer, founder and president of Elliott Management Corporation, speaks at WSJD Live conference in Laguna Beach
Paul Singer, founder and president of Elliott Management Corporation, speaks at WSJD Live conference in Laguna Beach, California, U.S., October 25, 2016. REUTERS/Mike Blake

February 19, 2019

AMSTERDAM (Reuters) – Paul Elliott Singer, the hedge fund manager behind activist investor Elliott, has taken a 6.1 percent stake in Dutch trust and business administration company Intertrust, according to a filing published by the Dutch Authority for Financial Markets (AFM).

The disclosure is reported as effective on Feb. 13, the day after the sale by Blackstone of its remaining 6.77 percent stake in Intertrust to institutional buyers via an accelerated book-building.

(Reporting by Toby Sterling; Editing by David Goodman)

Source: OANN

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Police: Good Samaritans thwart kidnaping in San Francisco

Good Samaritans stopped the attempted kidnapping of a 2-year-old boy by an Australian disc jockey from a busy San Francisco street, police said Tuesday.

Police arrested Roscoe Bradley Holyoake, 34, of Perth, Australia, on Friday.

Australia media reports Holyoake is a popular disc jockey.

The toddler was holding his mother's hand while they walked in the Castro neighborhood when Holyoake snatched the boy, San Francisco police say.

Holyoake ran for about half a block with the mother and several bystanders in pursuit before the bystanders grabbed and held him until police arrived.

Holyoake appeared briefly in court Tuesday and was ordered to return Thursday to enter a plea.

His attorney Steve Olmo told media outside court that Holyoake doesn't have a criminal record and was in San Francisco on business.

Holyoake remained in San Francisco County Jail on $500,000 bail.

___

Information from: San Francisco Chronicle, http://www.sfgate.com

Source: Fox News National

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Criminal case filed over Bangladesh hijacking attempt

More details about the attempted weekend hijacking of plane headed from Bangladesh's capital to Dubai emerged Tuesday after civil aviation authorities filed a criminal case over the attack.

Utpal Barua, head of the Patenga police station in Chittagong, said the case was filed late Monday. The plane, operated by Biman Bangladesh Airlines, was headed to Dubai via Chittagong on Sunday. Officials said the attempted hijacking by a Bangladeshi man occurred shortly after takeoff from Dhaka.

The 24-year-old man, identified by officials as Mohammed Polash Ahmed, was killed by military commandos after the plane made an emergency landing in Chittagong.

There are no other suspects, but the criminal case filing officially names Ahmed as the attacker.

According to the complaint, Ahmed attempted to enter the cockpit 15 minutes after the plane's takeoff. At one point, Ahmed, who was carrying "bombs-like and arms-like" objects, started shouting, demanding to talk to Prime Minister Sheikh Hasina.

The complainant, Debabrata Sarker, a technical assistant at Hazrat Shah Amanat International Airport in Chittagong, also said Ahmed exploded "two cracker-like objects" inside the plane, creating panic among the passengers and crew.

Police will now see whether any other elements were involved in the hijacking attempt, Mohammed Amanullah, a duty officer at the Patenga police station, said by phone.

There was still confusion over whether Ahmed was armed amid disputing accounts of the incident by officials and passengers.

Officials said Sunday that Ahmed was injured in an exchange of gunfire with special forces, and that he had shot at them first and was armed with a pistol. Some passengers also said they heard gunshot sounds inside the plane.

But civil aviation authorities cast doubt on that account Monday. When asked about reports that Ahmed had a toy gun, Civil Aviation Ministry secretary Mohibul Haque said they didn't know whether the pistol was a toy.

The incident also highlights security flaws in Bangladesh.

Ishfaq Ilahi Chowdhury, a retired air commodore for Bangladesh's air force, wrote Tuesday in an article in the Bengali-language Prohtom Alo daily that "it is noticeable there have been serious security lapses."

"The question is, whether the pistol was fake or real, how did a passenger carry it onto the plane?" he wrote.

On Tuesday, Ahmed was buried in his village outside Dhaka. His father said Ahmed was married to an actress but was divorced a few months ago.

Mufti Mahmud Khan, director of the law and media wing of Bangladesh's Rapid Action Battalion security agency, said Monday that the suspect was listed in its database as Md. Polash Ahmed, and had been arrested in 2012 in a kidnapping case. Khan declined to provide details about the kidnapping case.

Civil Aviation Junior Minister Mahbub Ali told reporters Monday that Ahmed had booked a seat on the flight as a domestic passenger heading from Dhaka to Chittagong, and that airport surveillance video showed him going through security with other passengers.

"There was no signal that he had something" when he boarded Sunday's flight, Ali said.

Khan said when the agency's bomb-disposal unit reached the scene, they found that Ahmed had fake "bomb-like material."

Bangladesh, a majority-Muslim nation of 162 million people, has had periodic terrorist attacks in recent years, including an assault on an upscale cafe in Dhaka's diplomatic enclave in 2016 that resulted in the deaths of 22 people, including 17 foreigners.

Source: Fox News World

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Loosely secured trailer likely caused Danish train accident

Danish authorities say a deadly accident which saw a high-speed passenger train strike a semi-trailer that fell off a freight train coming from the opposite direction, "very likely" happened because the unit "wasn't properly secured."

The Accident Investigation Board said Thursday in a preliminary report that "local wind conditions could have had enough strength" to knock semi-trailer off the freight train's flatcar as it crossed a bridge and tunnel link between central Denmark islands.

Eight people were killed and 16 injured in the Jan. 2 accident on a bridge during strong winds. Victims were all on the passenger train.

The freight train involved in Denmark's deadliest train accident in 30 years was transporting semi-trailers filled with beer crates.

Source: Fox News World

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Lebanon to US delegation: Beirut rejects Golan’s recognition

Lebanon's president has told a visiting American delegation that Beirut rejects the U.S. recognition of Israeli sovereignty over the occupied Golan Heights because it includes Lebanese areas annexed by Israel.

Michel Aoun told the delegation that included Republican U.S. Reps. Adam Kinzinger and Vicente Gonzalez that Lebanon has the right to work on regaining this lined "by all available means."

Arab countries unanimously rejected the recent U.S. recognition of Israeli control over the Golan, seized from Syria in 1967 and annexed in 1981, calling the Trump administration's policies unfairly biased toward Israel.

Lebanon fears for its claim to the Chebaa Farms and adjacent Kfar Chouba hills, which Israel occupied alongside Golan.

Israel had occupied south Lebanon, but despite withdrawing in 2000, remained in these strategic areas.

Source: Fox News World

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Cambodian authorities have ordered a one-hour reduction in the length of school days because of concerns that students and teachers may fall ill from a prolonged heat wave.

Education Minister Hang Chuon Naron said in an announcement seen Friday that the shortened hours will remain in effect until the rainy season starts, which usually occurs in May. The current heat wave, in which temperatures are regularly reaching as high as 41 Celsius (106 Fahrenheit), is one of the longest in memory.

Most schools in Cambodia lack air conditioning, prompting concern that temperatures inside classrooms could rise to unhealthy levels.

School authorities were instructed to watch for symptoms of heat stroke and urge pupils to drink more water.

The new hours cut 30 minutes off the beginning of the school day and 30 minutes off the end.

School authorities instituted a similar measure in 2016.

Source: Fox News World

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Explosions have rocked Britain’s largest steel plant, injuring two people and shaking nearby homes.

South Wales Police say the incident at the Tata Steel plant in Port Talbot was reported at about 3:35 a.m. Friday (22:35 EDT Thursday). The explosions touched off small fires, which are under control. Two workers suffered minor injuries and all staff members have been accounted for.

Police say early indications are that the explosions were caused by a train used to carry molten metal into the plant. Tata Steel says its personnel are working with emergency services at the scene.

Local lawmaker Stephen Kinnock says the incident raises concerns about safety.

He tweeted: “It could have been a lot worse … @TataSteelEurope must conduct a full review, to improve safety.”

Source: Fox News World

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The Wider Image: China's start-ups go small in age of 'shoebox' satellites
LinkSpace’s reusable rocket RLV-T5, also known as NewLine Baby, is carried to a vacant plot of land for a test launch in Longkou, Shandong province, China, April 19, 2019. REUTERS/Jason Lee

April 26, 2019

By Ryan Woo

LONGKOU, China (Reuters) – During initial tests of their 8.1-metre (27-foot) tall reusable rocket, Chinese engineers from LinkSpace, a start-up led by China’s youngest space entrepreneur, used a Kevlar tether to ensure its safe return. Just in case.

But when the Beijing-based company’s prototype, called NewLine Baby, successfully took off and landed last week for the second time in two months, no tether was needed.

The 1.5-tonne rocket hovered 40 meters above the ground before descending back to its concrete launch pad after 30 seconds, to the relief of 26-year-old chief executive Hu Zhenyu and his engineers – one of whom cartwheeled his way to the launch pad in delight.

LinkSpace, one of China’s 15-plus private rocket manufacturers, sees these short hops as the first steps towards a new business model: sending tiny, inexpensive satellites into orbit at affordable prices.

Demand for these so-called nanosatellites – which weigh less than 10 kilograms (22 pounds) and are in some cases as small as a shoebox – is expected to explode in the next few years. And China’s rocket entrepreneurs reckon there is no better place to develop inexpensive launch vehicles than their home country.

“For suborbital clients, their focus will be on scientific research and some commercial uses. After entering orbit, the near-term focus (of clients) will certainly be on satellites,” Hu said.

In the near term, China envisions massive constellations of commercial satellites that can offer services ranging from high-speed internet for aircraft to tracking coal shipments. Universities conducting experiments and companies looking to offer remote-sensing and communication services are among the potential domestic customers for nanosatellites.

A handful of U.S. small-rocket companies are also developing launchers ahead of the expected boom. One of the biggest, Rocket Lab, has already put 25 satellites in orbit.

No private company in China has done that yet. Since October, two – LandSpace and OneSpace – have tried but failed, illustrating the difficulties facing space start-ups everywhere.

The Chinese companies are approaching inexpensive launches in different ways. Some, like OneSpace, are designing cheap, disposable boosters. LinkSpace’s Hu aspires to build reusable rockets that return to Earth after delivering their payload, much like the Falcon 9 rockets of Elon Musk’s SpaceX.

“If you’re a small company and you can only build a very, very small rocket because that’s all you have money for, then your profit margins are going to be narrower,” said Macro Caceres, analyst at U.S. aerospace consultancy Teal Group.

“But if you can take that small rocket and make it reusable, and you can launch it once a week, four times a month, 50 times a year, then with more volume, your profit increases,” Caceres added.

Eventually LinkSpace hopes to charge no more than 30 million yuan ($4.48 million) per launch, Hu told Reuters.

That is a fraction of the $25 million to $30 million needed for a launch on a Northrop Grumman Innovation Systems Pegasus, a commonly used small rocket. The Pegasus is launched from a high-flying aircraft and is not reusable.

(Click https://reut.rs/2UVBjKs to see a picture package of China’s rocket start-ups. Click https://tmsnrt.rs/2GIy9Bc for an interactive look at the nascent industry.)

NEED FOR CASH

LinkSpace plans to conduct suborbital launch tests using a bigger recoverable rocket in the first half of 2020, reaching altitudes of at least 100 kilometers, then an orbital launch in 2021, Hu told Reuters.

The company is in its third round of fundraising and wants to raise up to 100 million yuan, Hu said. It had secured tens of millions of yuan in previous rounds.

After a surge in fresh funding in 2018, firms like LinkSpace are pushing out prototypes, planning more tests and even proposing operational launches this year.

Last year, equity investment in China’s space start-ups reached 3.57 billion yuan ($533 million), a report by Beijing-based investor FutureAerospace shows, with a burst of financing in late 2018.

That accounted for about 18 percent of global space start-up investments in 2018, a historic high, according to Reuters calculations based on a global estimate by Space Angels. The New York-based venture capital firm said global space start-up investments totaled $2.97 billion last year.

“Costs for rocket companies are relatively high, but as to how much funding they need, be it in the hundreds of millions, or tens of millions, or even just a few million yuan, depends on the company’s stage of development,” said Niu Min, founder of FutureAerospace.

FutureAerospace has invested tens of millions of yuan in LandSpace, based in Beijing.

Like space-launch startups elsewhere in the world, the immediate challenge for Chinese entrepreneurs is developing a safe and reliable rocket.

Proven talent to develop such hardware can be found in China’s state research institutes or the military; the government directly supports private firms by allowing them to launch from military-controlled facilities.

But it’s still a high-risk business, and one unsuccessful launch might kill a company.

“The biggest problem facing all commercial space companies, especially early-stage entrepreneurs, is failure” of an attempted flight, Liang Jianjun, chief executive of rocket company Space Trek, told Reuters. That can affect financing, research, manufacturing and the team’s morale, he added.

Space Trek is planning its first suborbital launch by the end of June and an orbital launch next year, said Liang, who founded the company in late 2017 with three other former military technical officers.

Despite LandSpace’s failed Zhuque-1 orbital launch in October, the Beijing-based firm secured 300 million yuan in additional funding for the development of its Zhuque-2 rocket a month later.

In December, the company started operating China’s first private rocket production facility in Zhejiang province, in anticipation of large-scale manufacturing of its Zhuque-2, which it expects to unveil next year.

STATE COMPETITION

China’s state defense contractors are also trying to get into the low-cost market.

In December, the China Aerospace Science and Industry Corp (CASIC) successfully launched a low-orbit communication satellite, the first of 156 that CASIC aims to deploy by 2022 to provide more stable broadband connectivity to rural China and eventually developing countries.

The satellite, Hongyun-1, was launched on a rocket supplied by the China Aerospace Science and Technology Corp (CASC), the nation’s main space contractor.

In early April, the China Academy of Launch Vehicle Technology (CALVT), a subsidiary of CASC, completed engine tests for its Dragon, China’s first rocket meant solely for commercial use, clearing the path for a maiden flight before July.

The Dragon, much bigger than the rockets being developed by private firms, is designed to carry multiple commercial satellites.

At least 35 private Chinese companies are working to produce more satellites.

Spacety, a satellite maker based in southern Hunan province, plans to put 20 satellites in orbit this year, including its first for a foreign client, chief executive Yang Feng told Reuters.

The company has only launched 12 on state-produced rockets since the company started operating in early 2016.

“When it comes to rocket launches, what we care about would be cost, reliability and time,” Yang said.

(Reporting by Ryan Woo; Additional reporting by Beijing newsroom; Editing by Gerry Doyle)

Source: OANN

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At least one person is reported dead and homes have been destroyed by a powerful cyclone that struck northern Mozambique and continues to dump rain on the region, with the United Nations warning of “massive flooding.”

Cyclone Kenneth arrived just six weeks after Cyclone Idai tore into central Mozambique, killing more than 600 people and displacing scores of thousands. The U.N. says this is the first time in known history that the southern African nation has been hit by two cyclones in one season.

Forecasters say the new cyclone made landfall Thursday night in a part of Mozambique that has not seen such a storm in at least 60 years.

Mozambique’s local emergency operations center says a woman in the city of Pemba was killed by a falling tree.

Source: Fox News World

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German drug and crop chemical maker Bayer holds annual general meeting
Werner Baumann, CEO of German pharmaceutical and chemical maker Bayer AG, attends the annual general shareholders meeting in Bonn, Germany, April 26, 2019. REUTERS/Wolfgang Rattay

April 26, 2019

By Patricia Weiss and Ludwig Burger

BONN (Reuters) – Bayer shareholders vented their anger over its stock price slump on Friday as litigation risks mount from the German drugmaker’s $63 billion takeover of seed maker Monsanto.

Several large investors said they will not support aspirin investor Bayer’s management in a key vote scheduled for the end of its annual general meeting.

Bayer’s management, led by chief executive Werner Baumann, could see an embarrassing plunge in approval ratings, down from 97 percent at last year’s AGM, which was held shortly before the Monsanto takeover closed in June.

A vote to ratify the board’s actions features prominently at every German AGM. Although it has no bearing on management’s liability, it is seen as a key gauge of shareholder sentiment.

“Due to the continued negative development at Bayer, high legal risks and a massive share price slump, we refuse to ratify the management board and supervisory board’s actions during the business year,” Janne Werning, representing Germany’s Union Investment, a top-20 shareholder, said in prepared remarks.

About 30 billion euros ($34 billion) have been wiped off Bayer’s market value since August, when a U.S. jury found the pesticide and drugs group liable because Monsanto had not warned of alleged cancer risks linked to its weedkiller Roundup.

Bayer suffered a similar defeat last month and more than 13,000 plaintiffs are claiming damages.

Bayer is appealing or plans to appeal the verdicts.

Deutsche Bank’s asset managing arm DWS said shareholders should have been consulted before the takeover, which was agreed in 2016 and closed in June last year.

“You are pointing out that the lawsuits have not been lost yet. We and our customers, however, have already lost something – money and trust,” Nicolas Huber, head of corporate governance at DWS, said in prepared remarks for the AGM.

He said DWS would abstain from the shareholder vote of confidence in the executive and non-executive boards.

Two people familiar with the situation told Reuters this week that Bayer’s largest shareholder, BlackRock, plans to either abstain from or vote against ratifying the management board’s actions.

Asset management firm Deka, among Bayer’s largest German investors, has also said it would cast a no vote.

Baumann said Bayer’s true value was not reflected in the current share price.

“There’s no way to make this look good. The lawsuits and the first verdicts weigh heavily on our company and it’s a concern for many people,” he said, adding it was the right decision to buy Monsanto and that Bayer was vigorously defending itself.

This month, shareholder advisory firms Institutional Shareholder Services (ISS) and Glass Lewis recommended investors not to give the executive board their seal of approval.

(Reporting by Patricia Weiss and Ludwig Burger; Editing by Alexander Smith)

Source: OANN

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