Wyeth calls its $2 convertible preferred stock for $60.08 each; redemption date July 15

By Susanna Moon

Chicago, April 23 - Wyeth said it will redeem all of its outstanding $2 convertible preferred stock on July 15.

As of April 22, there were 8,896 preferreds outstanding.

The redemption price for each preferred is $60.08, which includes accrued dividends up to the redemption date.

Holders may convert their preferreds into Wyeth common stock at the rate of 36 shares for each preferred until the close of business on the redemption date.

If the merger between Wyeth and Pfizer Inc. is completed, each common share will be converted into the right to receive $33.00 in cash plus 0.985 of a Pfizer share. Pfizer's common stock closed at $13.04 per share on April 22.

Given the redemption price, Wyeth said it expects most of the holders to convert their shares before the redemption date.

Wyeth is redeeming the preferreds in response to a request from Pfizer under the terms of the merger agreement, but the redemption is not contingent upon the closing of the merger.

Wyeth is a Madison, N.J.-based research-driven pharmaceutical and health care products company.

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