Cougar Biotech Board Backs J&J's $894M Bid

LOS ANGELES (AP) — Cougar Biotechnology Inc.'s board on Friday recommended shareholders approve takeover offer worth almost $894 million from Johnson & Johnson, which launched a cash tender offer to buy all shares of the clinical-stage developer of cancer treatments.

The $43-per-share offer would provide Cougar Biotechnology shareholders a slight premium over the stock's closing price of $42.93 on Thursday. The offer values the company at $893.7 million, based on the 20,784,120 common shares that Cougar Biotechnology listed as outstanding as of May 4 in its latest regulatory filing.

Shares of Cougar Biotechnology slipped 3 cents to $42.90 in morning trading Friday. Shares of New Brunswick, N.J.-based J&J fell 51 cents to $55.32.

Los Angeles-based Cougar said its board unanimously recommended acceptance of the bid, and the directors plan to tender all their shares in favor a transaction expected to close in the third quarter. The acquisition is subject to various closing conditions.

J&J, a diversified health products company, said it was making the offer through a new wholly owned subsidiary, Kite Merger Sub Inc. J&J announced its intent to acquire Cougar Biotechnology on May 21, and launched the tender offer Friday.