FRANKFURT, March 5 (Reuters) - Bayer said on

Tuesday it will hold off on plans to break up the diversified

group to focus instead on improving the operating performance,

resolving litigation and paying off debt.

"Our answer is 'not now' - and this shouldn't be

misunderstood as 'never'," CEO Bill Anderson said in a

statement.

The company said that for the next 24 to 36 months it would

seek to strengthen the drug development pipeline, address

litigation, reduce debt, and to further pursue job cuts and

speed up decision making by managers.

The cutbacks will reduce annual costs by 2 billion euros

from 2026, it added.

CEO Bill Anderson, who was hired last year to reverse the

company's fortunes, previously said he was examining options to

separate, spin off or sell businesses. He faces a deluge of

problems, most of which stem from the 2018 takeover of Monsanto

for $63 billion.

These include U.S. litigation alleging harm from weed-killer

glyphosate, a development setback for its most promising

experimental medicine, weak agriculture markets and investor

pressure to spin off or sell businesses.

The CEO added he was "considering every possible means to

bring closure" to U.S. lawsuits claiming that glyphosate has

caused cancer in plaintiffs.

Bayer would vigorously defend itself but also look at the

problem "from every angle, inside and outside the courtroom".

"Expect more action from Bayer in this space," Anderson

said.

About 54,000 cases remain outstanding, after 113,000 claims

were settled or found not eligible, according to an annual

report.

Bayer has also not been able to shake off personal injury or

environmental damage claims linked to polychlorinated biphenyls,

or PCBs, which are Monsanto-made chemicals no longer in use.

To shore up its finances, that German drugmaker has slashed

dividends, keeping what analysts estimate would have been

combined payouts of 6-7 billion euros over three years.

Investors have seen the company's value sink by two thirds

since the Monsanto takeover, which saddled it with costly

litigation and debt.

Bayer's net debt at the end of 2023 was up 8.5% to 34.5

billion euros. That burden has led some analysts to conclude a

capital increase may become necessary.