Bayer postpones sale of Agfa stake

German drugs and chemicals firm Bayer has postponed the proposed sale ofits remaining 30% stake in the Belgian image technology group Agfa-Gevaert (Marketletter March 26), citing "the prevailing weakness in global equity markets" and "the short-term decline" in Agfa's operating performance.

The news comes as somewhat of a blow for Bayer, which is seeking shareholder approval to raise up to 8 billion euros ($7.19 billion) for acquisitions. The sale of its stake in Agfa was expected to bring in 800-900 million euros, but as the company says that the transaction has been postponed "until further notice," Bayer's war chest now looks more modest. Agfa said that its preliminary sales figures for January and February were lower than the like, year-earlier period and sales for 2001 are forecast to increase 2%-3%. Net earnings growth is expected to be in double digits.