Faulding To Finalize US Unit Takeover

A H Faulding expects to finalize the $70 million completion of thetakeover of its US subsidiary, Faulding, by late September. In an interview with Reuters, Faulding managing director Ed Tweddell said the company had yet to decide how much it would raise from a rights issue to fund the deal, but felt that the move underlined the company's confidence in its growth prospects.

The board has set up an independent committee of non-aligned directors to assess the bid. The firm will offer $12 per share for the 38% of 5.2 million shares it does not already own in Faulding. Mr Tweddell said the company sees the offer as being fair to all shareholders involved, and is a 78% premium on the stock's value a year ago. He feels the bid will succeed, but it will not be a major setback if it does not.

Mr Tweddell noted that Faulding's product development and registration history had grown "astronomically" in Europe in the last few years. There is a conscious effort as the company expands geographically to grow Faulding organically, he said, by making sure that products are approved to move into these markets.