Barr Pharmaceuticals'


takeover proposal for


was welcomed Wednesday by the supervisory board of the Croatian drugmaker.

The board -- which received counsel from independent financial adviser Deutsche Bank -- said Barr's bid of $83.63 a share, plus a dividend of $2.12, "reflects fair value." The offer values Pliva at about $2.4 billion.

Barr made its formal bid last week, saying that Pliva will be the center of its European operations. Pliva, the biggest Eastern European drug firm by sales, is being pursued by Barr and Iceland's


. The winner will become the third-largest generic drug producer in the world behind

Teva Pharmaceutical Industries

(TEVA) - Get Report

and the Sandoz unit of


(NVS) - Get Report


Pliva management said in a statement that it likes Barr's commitment to preserving jobs and infrastructure in Croatia, saying, "

Barr's takeover offer represents an attractive long-term development perspective." Barr has said Pliva's registered office and production will remain in Croatia.

Furthermore, Pliva said Barr plans to expand the Croatian production facilities for the purpose of making products, which would increase local employment rates and improve regional distribution channels.

Actavis has offered $2.3 billion for Pliva.