Mixed views from Chiron's proxy advisers

US biotechnology and vaccines maker Chiron reports that two proxy advisory services have reached opposite conclusions regarding their voting recommendations to the firm's shareholders in connection with the proposed acquisition of all shares not already held in Chiron by Swiss drug major Novartis (Marketletters passim). A special meeting of Chiron shareholders will be held on April 12, 2006, to vote on the acquisition.

Proxy Governance, an independent proxy advisory firm, has recommended that Chiron shareholders vote in favor of the acquisition, while Institutional Shareholder Services, another independent proxy advisory firm, has recommended voting against the acquisition.

Chiron's independent directors unanimously recommend that shareholders vote for the Novartis acquisition. They believe it delivers full and fair value for the company and is a better alternative for its public shareholders than if the firm were to remain a stand-alone entity.