Fight for Schering AG draws to close, as Merck KGaA forces Bayer bid up to E89

In what had been a heart-stopping week in the German saga of the acquisition of Schering AG (Marketletters passim), Merck KGaA, which had been buying stock in the former since its original - 77 per share - hostile offer had been rejected, agreed to sell its accumulated 21.4% shareholding to Bayer, the "white-knight" that came in with a counter bid of 86 euros a share. At that time, Merck withdrew from the bidding, saying that a price of 86 euros was not justified, and would therefore, not attempt to top this.

Merck's latest decision came on the day of the deadline for shareholder acceptance of the Bayer offer, and has also come at a price: an extra 3 euros per share, as the firm has said it would sell its holding at 89 euros/share. Under German law, all other stockholders who have tendered their shares, or who decide to do so before the acceptance period expires at midnight June 14, will benefit from this price.

Although this now means that the acquisition will cost Bayer an additional 400.0 million euros ($503.3 million) on top of the original 16.5 billion euros, the firm's share price leapt 8.3% to $41.39 on the INET electronic exchange.