Bayer CEO says not vulnerable to takeover: paper

FRANKFURT (Reuters) - The drugs and chemicals group Bayer BAYG.DE does not see itself as vulnerable to a takeover, its chief executive told a German newspaper, after recent rumors that a foreign rival was interested in buying it.

Shares in the German group jumped at the start of last week, buoyed by market chatter that it was being eyed by U.S. rival Pfizer (PFE.N).

Bayer, which boasts a healthy pipeline of new drugs and an attractive over-the-counter medicines business, has long been seen as a takeover target.

Speaking to newspaper Tagesspiegel for its Monday edition, Bayer Chief Executive Werner Wenning said: "You can't rule out anything, especially not in the current environment."

Bayer's high market value, he said, should, however, protect it from takeover.

"Five years ago, our market value was 14 billion euros ($20 billion) -- now it is 42 billion euros," he said. "I don't think that looks bad."

Bayer will get better than expected synergies from Schering, a company it bought. "We had wanted to get synergies of 700 million euros yearly," said Wenning. "We will manage more than 800."

Wenning did not rule out further takeovers to bolster the group's health business, pointing to a fragmented pharma market and the expiry of many patents.

Pfizer has a history of doing mega-deals but investors have been disappointed by past acquisitions that failed to curtail its reliance on ageing blockbusters such as cholesterol fighter Lipitor, which goes off patent in 2011.

Any acquisition of Bayer by a pure pharmaceutical company would be complicated, since it would require the break-up of the chemical-drugs hybrid. In addition to drugs, Bayer is a global player in plastics and agrochemicals.

(Reporting by John O'Donnell; Editing by Richard Hubbard)