Pfizer acquires Warner Lambert

List of reports on Parke
07 February 2000

American drug firms Pfizer Inc and Warner-Lambert have agreed to merge to create the world's second largest pharmaceutical company. The transaction is expected to be complete by mid-2000. The merger is expected to result in several competitive advantages for the merged entity. See competitive strengths of the new company

The three-month bitter battle between the two ended after Pfizer offered an exchange of 2.75 shares of Pfizer common stock for each outstanding share of Warner-Lambert. The deal, based on Pfizer's 4 February closing price of $35.75, is valued at $90 billion, or $98.31 per Warner-Lambert share. This represents a 34 per cent premium over the average closing prices of Warner-Lambert during October 1999.

The new company, to be named Pfizer, will have William Steere as chairman and chief executive. There is no place in it for Lodewijk de Wink, chairman of Warner-Lambert.