PLIVA bid not over yet, says Barr Pharmaceuticals
4 July 2006 00:00 in Pharmaceutical Company Restructures
Barr Pharmaceuticals has warned that there is still much to be done in its bid to acquire PLIVA, the Croatian generics manufacturer.
The American pharmaceutical company said it had been the subject of "market misinformation" that cast doubt on the company's "ability to compete".
Actavis, the Icelandic pharmaceutical company, has also bid for PLIVA.
Barr has said that both companies must still seek approval for the takeover by the Croatian Financial Services Supervisory Agency (HANFA) and only after this step has been completed can shareholders have clarity into the "true value" of the bids.
Bruce L Downey, Barr's chairman and chief executive officer, stated: "Shareholders are being led to believe that the process is already over."
"In fact, the process is far from being over and the competition for ownership of PLIVA is just beginning, and will commence in earnest once Actavis has submitted its official HANFA notification and confirming bid," he added.
Mr Downey advised shareholders not to sell their shares until this process has been completed, concluding that the 50 per cent acceptance needed for a successful takeover was still "very achievable", regardless of who the minority shareholders are.
Barr said it had arranged a meeting with the US Federal Trade Commission to allow it to launch its tender offer as soon as possible.
The Croatian government has told Barr that it will not sell its stake in PLIVA and would only consider it if the headquarters and production facilities were kept in Zagreb.
Actavis has stated that its offer provides a "superior alternative" to Barr's offer, a claim Barr refutes.
© Adfero LtdOther news stories from 04/07/2006
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