GSK to buy CNS Inc for $566 million

UK-headquartered GlaxoSmithKline, the world's second largest drug company by sales, says that it has entered a definitive agreement for to acquire CNS Inc, the US maker of Breathe Right nasal strips and FiberChoice dietary fiber supplements for $37.50 per share in cash, valuing the transaction at approximately $566.0 million.

CNS shares jumped 30%, or $8.46, to $37.02 in early New York trading. London-listed GSK shares rose 1% in afternoon European action on October 9.

The merger consideration represents a premium of 31% over the trading price of CNS's common stock at close of business on October 6, 2006. The deal, which is expected to close by early 2007, is subject to customary conditions including CNS stockholder approval and antitrust clearance under the Hart-Scott-Rodino Act.