Teva to Buy Barr Pharma for More than $7 billion
NEW YORK (AP) - July 18, 2008
Teva Pharmaceutical Industries Ltd. also is offering to assume
$1.5 billion of Montvale, N.J.-based Barr Pharmaceuticals Inc.'s
debt.
Barr shareholders will receive $39.90 in cash and 0.6272 of a
Teva American Depositary Receipt for each share they own, or a
total purchase price of $66.50 per share. That represents a 16
percent premium to Barr's $57.17 closing price Thursday.
Barr shares finished at $46.82 Wednesday, before reports that a
deal was in the works sent the stock climbing 22 percent.
Already the largest generic drug maker in the world, Teva
reported $9.4 billion in sales in 2007. Barr posted $2.5 billion in
revenue, and the company describes itself as the largest maker of
oral contraceptives in the U.S. It began selling a generic version
of Bayer AG's birth-control pill Yasmin in the U.S. in July.
Barr also has the rights to sell a generic version of the
attention deficit hyperactivity disorder drug Adderall XR starting
April 1, 2009.
The deal will give Teva a larger presence in Central and Eastern
Europe, where Barr already has a footprint because of its 2006
purchase of Pliva, a Croatian drug maker.
Based on Barr's 108.1 million shares outstanding at April 28,
the deal is valued at $7.19 billion before assumed debt. In a
statement, the companies valued the deal at $7.46 billion before
debt.
Barr stock jumped $3.82, or 6.7 percent, to $60.99 in premarket
trading, which put the shares on pace for their highest opening in
more than two years. Teva's ADRs gave up $1.50, or 3.7 percent, to
$39.55, which would be an annual low for the stock.
