PLIVA accepts Barr bid
27 June 2006 00:00 in Pharmaceutical Company Restructures
PLIVA, the Croatian pharmaceutical company, has recommended Barr Pharmaceuticals' $2.2 billion (1.2 billion pounds) takeover bid to its shareholders.
A statement from PLIVA said that Barr's offer represents an 81 per cent premium on the average share price as of March 2006, when it received a proposal from Actavis.
The company said a successful merger would create a global pharmaceutical leader with $2.5 billion worth of revenue, an enhanced portfolio of generics and a strong presence in North American and Eastern European markets, as well as a growing involvement in Western Europe.
Barr says it will officially make its offer following approval from anti-trust authorities in Germany and the US. A successful offer will see at least 50 per cent of PLIVA shares transferred into holding by Barr.
Zeljke Covic, PLIVA's chief executive, stated: "PLIVA's supervisory and management boards have assessed the whole range of options available to the Company, including that of remaining a standalone business, and have concluded that Barr's proposal maximises value for all PLIVA shareholders.
"Barr is an ideal partner for future growth in this consolidating industry and an excellent strategic fit with PLIVA, which we believe will strongly contribute to the global competitiveness of the new Barr Group."
"We are confident that together we will prove to be one of the leading and most successful generics companies worldwide, bringing substantial benefit to all stakeholders," he added.
Earlier this year, PLIVA reported "strong" first quarter results, reporting that its generic drug sales had grown by 40 per cent in the US, although its net income was down by 32 per cent as the patent for azithromycin had expired.
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