Actavis bid for Merck KGaA generics ops less than asking price

Actavis bid for Merck KGaA generics ops less than asking price - source UPDATE

	Published : Thu, 03 May 2007 13:19 By : Agencies Print this Story

(Updating that Teva and joint private equity bid from Apax Partners and Bain Capital still in running for Merck KGaA's generics ops)

FRANKFURT (Thomson Financial) - Generic drugs giant Actavis had offered Merck KGaA a sum a few hundred mln eur lower than the sum being offered by rival bidders for the company's generics operations, before last night being 'advised' by the pharmaceutical giant to pull out of the bidding process, a source close to the situation told Thomson Financial News.

The source said that estimations that rival bidders were offering in the region of between 4-5 bln eur were not incorrect.

'The gap between what Actavis was willing to pay and what Merck is expecting was estimated to be too large, and would have meant stretching the company significantly.

He added: 'We are not talking about a billion or anything like that, we are talking about a difference of a few hundred million euros.

'It seems that Merck is looking to create value rather than synergy potentials.'

Rumours began circulating in financial circles today that Actavis had been 'kicked out' of the bidding process, due to its inability to meet conditions set by Merck.

'I do not know why these rumours were sparked, but they are completely untrue.

'Actavis has the financial means to undertake this acquisition, but decided simply that the expected price was too high,' clarified the source.

Actavis is now planning to focus on smaller acquisitions in the region of up to a few hundred mln eur, added the source.

In particular, it is hoping to expand in southern Europe, Latin America and Asia.

Actavis said earlier today that it has the financial means for major acquisition opportunities -- including that of Merck's generics operations -- and added that it will continue to evaluate other acquisition opportunities.

Sources today said that two further parties -- Israel's Teva Pharmaceuticals and a joint private equity offer from Apax Partners and Bain Capital -- are now battling it out in the war for Merck's generic operations.

krysia.diver@thomson.com

kd//cmr

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Actavis bid for Merck KGaA generics ops less than asking price - source UPDATE