Croatia's Pliva accepts $2.2 billion takeover offer from Barr Labs

Having rejected a hostile takeover offer from acquisitive Icelandic drugmaker Actavis (Marketletter March 27), leading Croatian generic pharmaceutical firm Pliva has accepted a higher, $2.2 billion, bid from US company Barr Laboratories. Actavis' original offer, although later increased to just over $2.0 billion, valued Pliva at some 1.6 billion, which the Croatian firm said did not reflect its prospects.

Under the terms of the proposed acquisition, Barr will pay Pliva stockholders who tender their shares 705 forint in cash for each, which equates to around $24.42 per Global Depositary Receipt at current exchange rates, said the US firm, which expects to launch a tender offer on receiving Hart-Scott-Rodino clearance in the USA.

This is a premium of approximately 81% to Pliva's average share price of 510 forint for the 12 months to March 16, the last trading day prior to Actavis' takeover proposal. Barr also notes that its offer is conditional on receiving acceptances for more than 50% of Pliva's shares.