Actavis Inc. (ACT) rejected a cash-and-stock offer from fellow generic drugmaker Mylan Inc.
for $15 billion, deciding instead to pursue talks to take over Warner Chilcott (WCRX) Plc, said people familiar with the matter.
The Mylan offer valued Actavis at $120 a share and would have created the world’s largest
generic drugmaker, said the people, who asked not to be named because the
discussions were private. Mylan and Warner Chilcott both approached Actavis in recent weeks to discuss potential deals when
news of merger talks with Valeant Pharmaceuticals
International Inc. (VRX) leaked, said these people.
Mylan Inc., based in Canonsburg, Pennsylvania, made its offer in a letter
to Actavis Inc. on May 7, one of the people said.
Actavis is discussing a bid of more than $5 billion for Warner Chilcott,
said another person. A deal could be completed in the next couple of weeks,
that person said.
Mylan, based in Canonsburg, Pennsylvania, made its offer in a letter to
Actavis on May 7 that emphasized the cost savings that two large generic
drugmakers could get by merging, one of the people said. Actavis rejected the
offer, in which Mylan was offering more stock than cash, a couple of days
later, the person said.
Actavis shares rose 1.2 percent to $121.90 at 1:34 p.m. in New York, after
earlier climbing as much as 4.8 percent. Mylan advanced 0.8 percent to $29.43,
while Warner Chilcott was little changed at $18.89.
Teva Pharmaceutical
Industries Ltd. (TEVA), an Israel-based drug company, has also looked at Actavis, said one of the people. Teva is more keen on
smaller acquisitions and isn’t likely to pursue a bid, one of the people said.
Warner Chilcott Process
Representatives at Mylan, Teva and Actavis declined to comment. An official
at Warner Chilcott didn’t immediately return a call seeking comment.
More than a year ago, Warner Chilcott disclosed that it was in discussions
with suitors and conducting a strategic review. Actavis was among those that
considered an offer for the company during that process, said another person.
In August, Warner Chilcott revealed that the talks had ended and that it
would renew a share-buyback program and pay a special dividend, saying the
measures would be more rewarding for shareholders.
Δείτε το
σχετικό video από το CNBC
