Merck KGaA makes surprise 10.6 billion euros bid for majority stake in Serono

Merck KGaA, which was thwarted in its attempt to acquire fellow German pharmaceutical group Schering AG earlier this year (Marketletter passim), says it has entered into an agreement with the Bertarelli family, which owns the majority of Swiss biotechnology major Serono SA, to acquire its holding for the sum of 10.6 billion euros ($13.5 billion), or 1,000 Swiss francs a share. This is a premium of around 20% to Serono's share price ahead of the offer.

The news, which broke as this issue of the Marketletter was going to press, surprised the markets first thing September 21, given that Serono, which had put itself up for sale last year but, finding no buyer, decided instead to look for acquisitions.

The billionaire Bertarelli family owns 64.5% of Serono but this will give Merck 75% of the Swiss group's voting rights. The latter asked the Swiss stock exchange to suspend its shares, which have fallen around 13% since the start of this year. Merck's share price dropped about 6% on the Frankfurt bourse.