Alpharma board rejects King's offer

New Jersey, USA-based Alpharma's board of directors has filed with the Securities and Exchange Commission a Solicitation/Recommendation Statement on Schedule 14D-9 and sent a letter to shareholders in which the members unanimously rejected King Pharmaceuticals' unsolicited tender offer to acquire all of the outstanding shares of the firm for $37 per share as financially inadequate and not in the best interests of shareholders (Marketletters passim).

Alpharma urged shareholders not to tender shares pursuant to King's offer while the firm continues to pursue its previously-announced process to explore all strategic alternatives to maximize shareholder value, including a possible sale to King or to another party for a price in excess of that offered.

Chief executive Dean Mitchell, said: "we believe other offers or alternatives to the King offer may emerge from this process that will provide shareholders with greater value than $37 per share. Indeed, we have received expressions of interest from multiple parties who contacted us following King's public disclosure of its proposal or who our financial advisors solicited at our request." He added that confidentiality agreements have been signed with a number of these parties which have now begun due diligence reviews, and have already received a written preliminary indication of interest for a business combination from a party that includes a share price in excess of the King offer.