Barr Pharmaceuticals to make $2.2 billion tender offer for Pliva shares

By Lisa Kerner

Charlotte, N.C., June 27 - Barr Pharmaceuticals, Inc.'s proposed tender offer to purchase 100% of Pliva d.d. shares for about $2.2 billion in cash has been endorsed by Pliva's supervisory board.

Under the proposal, Barr would pay Pliva shareholders who tender their shares $24.42. The company said it will finance the transaction using cash reserves as well as $2 billion in new debt.

Barr plans to launch the offer later this year following Hart-Scott-Rodino clearance in the United States, regulatory review in Germany and approval by the Croatian Agency for Supervision of Financial Services.

"Pliva's supervisory and management boards have assessed the whole range of options available to the company, including that of remaining a standalone business, and have concluded that Barr's proposal maximizes value for all Pliva shareholders," Pliva chief executive officer Zeljko Covic said in a company news release.

"The combined company will continue to focus on high barrier-to-entry products utilizing Barr's solid oral dosage form capabilities and Pliva's injectable and cream/ointment delivery technologies," Barr chief executive officer Bruce L. Downey added in the news release.

The two companies agreed in March 2005 to develop a generic version of Amgen's Neupogen (filgrastim) product.

Pliva is a generic pharmaceutical company based in Zagreb, Croatia.

Barr is a holding company that develops generic and proprietary pharmaceuticals through its subsidiaries, Barr Laboratories, Inc. and Duramed Pharmaceuticals, Inc.

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