Monday, before the bell, King Pharmaceuticals Inc. (KG) announced that it is extending its previously announced tender offer for all outstanding common shares of Alpharma Inc. (ALO) until end of day on November 21, 2008.
On September 12, King Pharmaceuticals announced that it commenced a tender offer to acquire all the outstanding shares of Class A common stock of Alpharma for $37 per share in cash, representing a total equity value of approximately $1.6 billion and an enterprise value of approximately $1.4 billion. The tender offer was originally scheduled to expire at 5:00 pm, New York City time, on Friday, October 10, 2008.
King has currently extended the offer until 5:00 pm, New York City time, on November 21, 2008, and noted that all other terms and conditions of the tender offer remain unchanged.
King said as of the close of business on October 10, 2008, approximately 18.8 million shares of Class A common stock of Alpharma, including approximately 3.4 million shares subject to guarantees of delivery, representing approximately 45% of all outstanding shares, were validly tendered and not withdrawn pursuant to the tender offer.
The tender offer represents a 67% premium over the closing price of Alpharma Class A Common Stock on August 4, 2008, the date of King's initial private written proposal to Alpharma and a 54% premium over the closing price on August 21, 2008, the last trading day prior to public disclosure of King's proposal. The offer also includes a 60% premium over Alpharma's average closing price during the twelve-month period ended August 21, 2008.
Credit Suisse and Wachovia Securities are acting as financial advisors, and Dewey & LeBoeuf LLP is acting as legal counsel, to King. Innisfree M&A Incorporated is acting as information agent for King's offer.
KG closed Friday's regular trading session at $7.81.
ALO ended Friday's trading session at $30.62.
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