King raises Alpharma offer to US$1.6bn

Source: Healthcare Digital

Date :9/11/2008 11:48:35 PM

King Pharmaceuticals Inc raised its offer for Alpharma Inc on September 11 to US$1.6 billion and threatened a hostile takeover.

King said today it intended to begin a tender offer for all of Alpharma's Class A shares, at US$37 each from its previous bid of US$33 per share.

The new offer - an increase of 12 percent - represents a 54 percent premium for Alpharma shares.

Alpharma urged shareholders to take no action with respect to the hostile offer until its board makes a recommendation.

It also said it is exploring strategic options, including a possible sale of the company, given King's revised proposal and interest from other parties.

Alpharma shares rose 4.7 percent - above King's new offer price - while King shares fell four percent.