This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Chiron Turns Around Bottom Line

Chiron (CHIR) said Tuesday that it expects to seek shareholder approval in March of a proposed takeover by Novartis (NVS - Get Report), the Swiss drug colossus that already owns 44% of its shares.

Howard Pien, Chiron's CEO, told investors and analysts that his company must get approval for its merger proxy from the Securities and Exchange Commission before it can set a voting date. Only non-Novartis shareholders can vote.

The Emeryville, Calif., company also needs approval by European Union antitrust regulators. The Federal Trade Commission has already cleared the transaction. Pien, who declined to answer questions about the Novartis bid, repeated previous comments that he expects the deal to be completed during the first half of this year.

This sliver of updated merger news accompanied Chiron's issuance of fourth-quarter and full-year financial results that beat the comparable periods in 2004. Chiron didn't provide financial guidance for 2006.

Novartis has offered to buy the rest of Chiron that it doesn't own for $45 a share, or $5.1 billion. But the Novartis bid is facing opposition from a significant minority of investors. Four investment management firms owning 17.5% of the total number of Chiron shares, and 30% of shares eligible to vote, say the Novartis offer is too low.

Novartis has said it won't raise its bid above $45. The company initially offered $40 a share, but Chiron's board rejected the bid as inadequate.

During the last few days, Chiron has traded slightly above $45 a share. It closed Tuesday at $45.61, up 61 cents, or 1.4%. After hours, the stock added another 15 cents.

For the three months ended Dec. 31, Chiron earned $144.2 million, or 71 cents a share, when calculated by generally accepted accounting principles. During the same period in 2004, it recorded a GAAP loss of $23.1 million, or 12 cents a share. Fourth-quarter revenue was $615.7 million vs. $434.4 million the prior year.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

Jim Cramer's protégé, David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,416.85 +225.48 1.31%
S&P 500 2,021.25 +19.09 0.95%
NASDAQ 4,683.4070 +45.4130 0.98%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs