Merck, Schering-Plough Set Meetings On Merger

The merger is expected to eliminate about 16,000 jobs at the two companies and bring an estimated annual cost savings of $3.5 billion after 2011. That is not dependent on retaining rights to revenue from Remicade and Simponi, but "the loss of these rights would reduce the amount of sales expected to be generated by the combined company," the proxies state.

Meanwhile, more than a dozen potential class action suits have been filed against the two companies and their boards of directors, accusing them of breaching their fiduciary duty to stockholders.

Merck, a top maker of pills and vaccines, would become diversified overnight with the acquisition. Schering-Plough will add strength in the prized area of biologic drugs, which are made from living cells and command high prices, and give it strong animal and consumer health businesses, with well-known products such as Dr. Scholl's foot care products and Coppertone sun care items.