Bayer, the German pharmaceutical group, is considering scrapping a hybrid bond and slashing the size of an equity offering earmarked to help fund its €17bn ($21.6bn) acquisition of Schering, after netting €3.6bn from the sale of its diagnostics arm.

Bayer today announced its second mergers and acquisitions deal in less than a fortnight after agreeing to sell the diagnostics business to German engineering group Siemens.