King’s Higher Bid For Alpharma Still No Ace, Board Says
Executive Summary
"Multiple parties" have indicated interest in a business combination with Alpharma, the company's board of directors said in a letter to shareholders Sept. 26, urging them to reject King's $1.6 billion hostile bid for the company
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King Pharmaceuticals will extend its tender offer for shares of Alpharma to Nov. 21. Its second offer of $37/share was rejected Sept. 26, with CEO Dean Mitchell citing the offer as "financially inadequate." The offer was a step up from King's original $33/share offering (1"The Pink Sheet," Sept. 29, 2008, p. 29). But in a letter to shareholders at the end of September, Mitchell said he believes other offers or alternatives to King's may emerge, providing shareholders with greater value than $37/share, and that the company has received expressions of interest from multiple parties
King extends its offer for Alpharma
King Pharmaceuticals will extend its tender offer for shares of Alpharma to Nov. 21. Its second offer of $37/share was rejected Sept. 26, with CEO Dean Mitchell citing the offer as "financially inadequate." The offer was a step up from King's original $33/share offering (1"The Pink Sheet," Sept. 29, 2008, p. 29). But in a letter to shareholders at the end of September, Mitchell said he believes other offers or alternatives to King's may emerge, providing shareholders with greater value than $37/share, and that the company has received expressions of interest from multiple parties
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