King's new offer for Alpharma on hold

King Pharmaceuticals has increased its offer to acquire fellow USA-based drugmaker Alpharma from the original $33 per share to $37 (Marketletter September 1), valuing the latter at some $1.6 billion, a 60% premium to its closing price on August 21, prior to the bid being made. In addition, King announced that, because its earlier advance was rejected, it would commence a cash tender offer to buy all the outstanding shares in the firm, saying that this was "a compelling offer" for shareholders. For its part, however, Alpharma has urged investors to take no action, saying that its board will consider the new offer and make a recommendation within 10 days.