are reportedly nearing a merger agreement, as the two drug makers hammer out a deal that will likely involve a sweetening of Pfizer's 3-month-old bid.
Although the companies are still trying to work out the exact price Pfizer would pay for Warner-Lambert, the companies could reach an agreement within a few days,
The Wall Street Journal
New York-based Pfizer's original bid involved payment of 2.5 Pfizer shares for every Warner-Lambert share. Warner-Lambert reportedly wants that bid upped to three Pfizer shares.
If the companies were to meet halfway, around 2.7 to 2.8 Pfizer shares per Warner-Lambert share, the deal would be valued around $84.8 billion.
The renewal of talks between the companies comes about a week after
negotiations broke down for a three-way merger between
Procter & Gamble
, Warner-Lambert and
American Home Products
Last November, Morris Plains, N.J.-based Warner-Lambert and American Home Products agreed to merge. American Home Products would be owed a $1.8 billion breakup fee if the agreement falls through, but the company might demand more if Warner-Lambert wants to make a clean break to posititon itself to be acquired by Pfizer.
Pfizer closed trading Tuesday up 5/8 at 36 13/16 while Warner-Lambert finished up 1 5/8 to 95 5/8. (Pfizer closed down 1, or 2.7%, at 36. Warner Lambert closed down 3/4, or 0.78%, at 94 7/8.)