Barr Pharmaceuticals increases tender offer for Pliva shares to $2.3 billion

By Lisa Kerner

Charlotte, N.C., June 30 - Barr Pharmaceuticals, Inc. said it increased its offer to purchase 100% of the shares of Pliva dd to approximately $2.3 billion in cash from $2.2 billion.

The enhanced proposal gives Pliva shareholders $25.73 per share plus a dividend, for a total of $26.15, up from $24.42 in the original tender offer.

Meanwhile Pliva advised its shareholders not to take any action following Actavis Group's announcement that it intends to make an offer to Pliva, which it values at $1.6 billion, according to a news release.

The offer announced by Barr and the proposal announcement by Iceland-based Actavis present potential antitrust issues, Pliva said.

"As we stated when our initial offer was announced, we believe that Barr represents the best potential suitor for Pliva and provides significant value to Pliva's shareholders," Barr chairman and chief executive officer Bruce L. Downey said in a company news release.

"In addition, Barr offers a number of other strengths that differentiate us from other potential acquirers, including: the complementary nature of our two businesses; the limited overlap in products and markets; our commitment to maintain investment in Pliva facilities; and our plan to headquarter our European operations in Croatia."

As with its initial offer, Barr said it plans to finance the transaction and related costs with a portion of Barr's cash reserves, and new debt of about $2 billion under long-term and short-term facilities.

The company had more than $600 million in cash and marketable securities and about $15 million of debt outstanding as of March 31.

Barr had announced it intended 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 is a generic pharmaceutical company based in Zagreb, Croatia.

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

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.