Actavis Answers Barr's Pliva Bid
The battle of the Balkans may not be over, at least among generic-drug companies.
Iceland's Actavis Group, whose previous $1.6 billion offer was rejected as inadequate by Pliva's management, raised its bid to $2.3 billion because it "identified greater potential synergies than previously anticipated."
The Actavis proposal "clearly represents both superior value and certainty of execution for Pliva's shareholders," said Robert Wessman, CEO of Actavis, in a prepared statement. "We look forward to receiving a positive response from Pliva's supervisory board and presenting a public offer for Pliva shareholders."Both the Barr and Actavis bids are for cash. There was no immediate comment from Pliva. Unlike Barr's bid, Actavis said its proposal "is not conditional upon prior completion of regulatory reviews in the U.S., Germany or other jurisdictions and will bring immediate value to shareholders." Just in case Pliva's management didn't get the message, Actavis said it has entered into call-option agreements, representing 10.7% of Pliva's shares that are traded on the Zagreb stock exchange. "The option agreements and direct and indirect ownership thus secure 20.4% of outstanding Pliva shares for Actavis," said the Icelandic company.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV