Bye-bye, Bayer
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Doug Krizner: The German aspirin giant Bayer is leaving the New York Stock Exchange today. It will no longer be listed under the ticker BAY. And its not the only European company delisting. Jill Barshay reports.
Jill Barshay: Business lobbyists have been warning for five years that foreign companies would leave U.S. stock markets because of onerous and expensive regulations.
And it’s finally happening. Heading out the exit doors this year are British Airways, Ducati, and now Bayer.
Bill Cline runs Acai Solutions, a company that works with stock exchanges. He says electronic trading is what’s really driving global companies to list on fewer exchanges.
Bill Cline: So by entering an order on a computer, that order can go to exchanges all over the world. And in short, capital can find the companies regardless of where they list.
Bayer says leaving the NYSE will save more than $20 million in listing fees and accounting costs.
Cline expects more foreign companies to leave. Especially big ones with marquis names that don’t need a U.S. listing to get the attention of investors.
In New York, I’m Jill Barshay for Marketplace.
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