Pink Sheet is part of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC’s registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 8860726.

This copy is for your personal, non-commercial use. For high-quality copies or electronic reprints for distribution to colleagues or customers, please call +44 (0) 20 3377 3183

Printed By

UsernamePublicRestriction
UsernamePublicRestriction

REVLON HAS ONE WEEK TO FIND COUNTER OFFERS TO PANTRY PRIDE's $58 PER SHARE

Executive Summary

REVLON HAS ONE WEEK TO FIND COUNTER OFFERS TO PANTRY PRIDE's $58 PER SHARE takeover bid following a Delaware start court action issued Oct. 25. The state court indirectly gave Revlon an extra week by granting a stay to an earlier injunction issued in favor of Pantry Pride. The suitor had sought, and received, an injunction against Revlon's lock-up agreement with Forstmann Little to protect a planned leveraged buy-out. The stay was granted by the court to allow Revlon to prepare an appeal of the injunction to the Delaware Supreme Court. Without the stay, Pantry Pride would probably have begun its $58 per share tender offer. That offer was contingent on the elimination of the lock-up provisions in the Revlon-Forstmann agreement. Forstmann had the right, according to the lock-up, to purchase Revlon's vision care business and clinical labs business for $525 mil. should any third party purchase 40% of Revlon's stock. The Oct. 23 injunction by the Delaware court would have nullified the lock-up agreement. The temporary delay in Pantry Pride's plan gives Revlon time to negotiate a sweetened leveraged buy-out offer or to try to put together some other form of defensive sale or divestiture plan. Revlon already has American Home Products lined up as a buyer for Norcliff-Thayer and a chemical business. The vision care and clinical labs businesses are clearly attractive to outside buyers, and investment bankers are understood to have clients ready for the Rx drug businesses. Before the stay was granted, Pantry Pride Chairman Ronald Perelman described the injunction as "a great victory for shareholders" which "clears the way for Revlon shareholders to participate in Pantry Pride's generous offer." The Delaware high court could accept the Revlon request for a rehearing and schedule a court date as soon as Oct. 31.

You may also be interested in...



Part D Discount Liability Coming Into Focus: CMS Releases Drug Cost Data

Newly released Medicare Part D data sheds light on the sales hit that branded pharmaceutical manufacturers will face when the coverage gap discount program gets under way in 2011

FDA Skin Infections Guidance Spurs Debate On Endpoint Relevance

FDA appears headed for a showdown with clinicians and the pharmaceutical industry over the proposed new clinical trial endpoints for acute bacterial skin and skin structure infections, the guidance's approach for justifying a non-inferiority margin and proposed changes in the types of patients that should be enrolled in trials

Shire Hopes To Sow Future Deals With $50M Venture Fund

Specialty drug maker Shire has quietly begun scouting deals with a brand-new $50 million venture fund, the latest of several in-house investment arms to launch with their parent company's pipelines, not profits, as the measure of their worth

UsernamePublicRestriction

Register

MT142726

Ask The Analyst

Please Note: You can also Click below Link for Ask the Analyst
Ask The Analyst

Your question has been successfully sent to the email address below and we will get back as soon as possible. my@email.address.

All fields are required.

Please make sure all fields are completed.

Please make sure you have filled out all fields

Please make sure you have filled out all fields

Please enter a valid e-mail address

Please enter a valid Phone Number

Ask your question to our analysts

Cancel