Lilly Boosts Bid for Icos

Eli Lilly(LLY Quote) raised its offer to acquire Icos(ICOS Quote) by $2 a share to $34, taking the overall value of the deal to $2.3 billion.

Lilly called the bid its "best and final offer." The move will force a delay in a vote by Icos shareholders, which had been scheduled for Tuesday.

Instead, shareholders of the company that makes the impotence drug Cialis will vote on Jan. 25. Icos shareholders as of Dec. 26 will be eligible to vote. The boards of Icos and Lilly unanimously approved the new offer.

On Monday, Icos shares were up 50 cents, or 1.5%, to $33.85. Lilly's stock was down 76 cents, or 1.4%, to $53.75.

The two companies have a joint venture that sells Cialis in certain markets, and Lilly has said the takeover would reduce costs in the long run. The companies have been partners for eight years.

Lilly made its first bid in mid-October . But by later that month, Icos began trading over $32 and rose as high as $33.51. When a stock trades above a takeover bid, it often indicates that someone else might make a higher offer. However, it's doubtful another company would want to buy Icos, knowing that it would inherit the Lilly marketing agreement.