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Leverkusen / San Francisco (dpa) - The billion dollar glyphosate comparison between Bayer and US plaintiffs lifted the chemical company's shares to the top of the Dax on Thursday.
It gained more than five percent by the afternoon.
Bayer had reached a compromise on a crucial part of its billion dollar glyphosate settlement with US plaintiffs on Wednesday evening German time after a long hacking.
The breakthrough was about how to deal with future US lawsuits over alleged cancer risks from the glyphosate weed killer Roundup.
A formal agreement had been reached with the plaintiff's attorneys, which also included a commitment of up to 2.0 billion US dollars (1.7 billion euros).
Bayer had already put the money aside in 2020.
The agreement was well received by investors.
They hope that the subject of glyphosate will finally get off the table in the foreseeable future and that management can concentrate completely on day-to-day business again.
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Analyst Gunther Zechmann from Bernstein Research spoke of a step in the right direction.
If the responsible judge approves the settlement, Bayer should get off the legal disputes more cheaply than the market average expects, which would mean significant price potential for the share.
The Dax group had the legal conflicts over glyphosate with the billion dollar takeover of the US seed giant Monsanto in 2018.
Last June, Bayer had already agreed on a large settlement package with numerous US plaintiffs, which was later rejected by the responsible US judge on one important point.
As a result, the whole deal to settle the proceedings suddenly seemed to be in jeopardy again.
Bayer and the plaintiffs' attorneys have now revised this part of the settlement and re-submitted it to Federal Judge Vince Chhabria for approval.
Numerous US proceedings are bundled with him.
© dpa-infocom, dpa: 210204-99-303853 / 2