Barr Can Buy Pliva

A majority of shares support the takeover.
Author:
Publish date:

Barr Pharmaceuticals

(BRL)

has received enough shares in a tender offer to buy the Croatian generic-drug maker

Pliva

for $2.5 billion.

Even though Croatian regulators won't have an official count until Oct. 19, Barr said Pliva shareholders have tendered more than 90% of the stock outstanding, well above the 50%-plus-one needed to close the deal.

Barr expects to complete the transaction by Oct. 25, creating the world's third-largest generic-drug maker behind Israel's

Teva Pharmaceutical Industries

(TEVA) - Get Report

and the Sandoz division of Switzerland's

Novartis

(NVS) - Get Report

.

"Our new, combined company will have revenues of approximately $2.4 billion, a strong balance sheet and a strong cash position," said Bruce Downey, Barr's chairman and CEO. The company's financial foundation is strong enough to let Barr "pay down debt related to the acquisition, as well as provide sufficient capital to fund expanded investment ... in Croatia, and throughout Europe and the United States."

Barr won Pliva following a prolonged

bidding contest with Iceland's

Actavis Group

.