King Pharmaceuticals to begin $37-per-share cash tender offer for Alpharma

By Lisa Kerner

Charlotte, N.C., Sept. 11 - King Pharmaceuticals, Inc. is taking its revised offer for Alpharma Inc. directly to the company's shareholders in the form of a cash tender offer, despite Alpharma's rejection of the revised $37-per-share offer price.

Alpharma's board recently adopted a limited-duration shareholder rights plan in response to King's prior unsolicited offer of $33 per share, which Alpharma also rejected, it was previously reported.

The new offer is a 67% premium over Alpharma's closing price on Aug. 4 and represents a total equity value of approximately $1.6 billion and an enterprise value of approximately $1.4 billion, a King news release said.

King chairman, president and chief executive officer Brian A. Markison said the company is committed to completing the transaction and remains willing "to work cooperatively with Alpharma."

However, King said it will seek to replace Alpharma's board with its own nominees in order to facilitate the offer.

Alpharma's board of directors urged shareholders to refrain from taking any action with respect to the offer until it makes a recommendation within the next 10 business days.

The board will consider King's proposal, as well as expressions of interest from other parties, as it explores strategic alternatives including a sale of the company, an Alpharma news release said.

King, a Bristol, Tenn., integrated branded pharmaceutical company, was advised by Credit Suisse and Wachovia Securities.

Alpharma is a Bridgewater, N.J.-based specialty pharmaceutical and animal health company.

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