German contrast media firm Schering of Berlin said that its executive board will support a voluntary public offer from Bayer to acquire all its outstanding public shares at 86 euros ($103.50 U.S.) per share.
The Bayer offer represents a premium of 29% over Schering's closing price on March 10 on the Deutsche Börse Xetra electronic trading system. At the offer price, Schering's equity is valued at 16.3 billion euros ($19.6 billion), on the basis of 190 million shares outstanding.
The name of the new company will be Bayer Schering Pharma. Its headquarters will be in Berlin, with German research facilities in Berlin and Wuppertal and U.S. research facilities in Richmond, VA; Berkeley, CA; and West Haven, CT.
In related news, German drugs and chemicals group Merck pulled out of the bidding for Schering, saying that it would not raise its offer in response to the bid from Bayer. Earlier this month, Merck had bid 77 euros ($92.66) per share for the firm in what was seen as a hostile takeover move.
By AuntMinnie.com staff writers
March 24, 2006
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