Bristol-Myers Squibb, AstraZeneca expand alliance through Amylin acquisition
30 Jun 2012
Global pharmaceutical major Bristol-Myers Squibb and AstraZeneca have teamed up to buy Amylin Pharmaceuticals, a biopharmaceutical company for $7 billion.
Amylin, headquartered in San Diego, California, specialises in delivering novel therapies for diabetes and other metabolic disorders.
As per the deal, Bristol-Myers Squibb will acquire Amylin for $31 per share in cash, pursuant to a cash tender offer and second step merger, for an aggregate purchase price of approximately $5.3 billion. The offer price is a 10 per cent premium to Amelyn's closing share price on Friday.
The total value of the transaction, including Amylin's net debt and a contractual payment obligation to Eli Lilly & Company, together totaling about $1.7 billion, is approximately $7 billion.
Amylin had last month rejected a $3.5 billion, $22 a share, unsolicited takeover offer from Bristol-Myers Squibb (See: Amylin reportedly rejects Bristol-Myers $3.5-bn bid)
Bristol-Myers said that it s now paying nearly $2 billion more than its February offer, since it had then made the offer from whatever information was publicly available on Amylin.
.jpg "RBI keeps repo rate unchanged as focus remains on inflation")
.jpg "Indian Oil, Panasonic team up for lithium-ion cell production in India")
