Bayer says animal health unit large enough

FRANKFURT (Reuters) - Bayer sought to dampen expectations that any proceeds from a separate listing of its plastics unit would be used for takeover deals to bolster its animal health activities. "We have an animal health business that is not small, with good products in the market," Chief Executive Marijn Dekkers said in a conference call. "We believe we have a good animal health business that can very well operate on its own." Any proceeds from a separate listing of the Bayer MaterialScience division might be used to cut debt. Analysts have previously said they expected Bayer to bulk up its veterinary drugs unit, possibly eyeing larger rival Zoetis. Spending "very much money" on deals could pose a challenge to Bayer's credit rating, Dekkers warned. The CEO also said Bayer had no intention to sell MaterialScience and would continue to prepare the listing. Private equity firms are circling Bayer's 10 billion-euro ($12.7 billion) plastics business, hoping to divert the German drugmaker from its plan to list the division, two people familiar with the matter told Reuters last week. (Reporting by Ludwig Burger; Editing by Maria Sheahan)