King Wins Alpharma With $1.6 Billion Offer

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handshake-flickrAlpharma finally agreed to the cash offer, ending a months-long battle. King Pharmaceuticals will pay $37 a share for Alpharma, representing a 54 percent premium to the closing stock price on August 21, the last trading day before King’s initial $33-per-share bid.

After Alpharma rejected the original $1.4 billion offer, King raised its bid and threatened to take the offer directly to shareholders (back story). Now, though, boards from both drugmakers unanimously approved the deal. King’s tender offer, which had been scheduled to expire November 21, is now extended to December 19. As of last Friday, 73 percent of Alpharma shares had been tendered. King expects the deal to close by year’s end (the King statement).

pic thx to o5com on flickr

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