Novartis ups bid for remainder of Chiron to $48 a share, which rebels will accept

Swiss pharmaceutical major Novartis looks set to complete the acquisition of the 56% of shares in US biotechnology/vaccines firm Chiron after it raised its offer price from the original $40.00 a share in September 2005, which was later upped to $45.00 in October, to $48.00, valuing the latter at around $5.4 billion versus $5.1 billion under the earlier terms (Marketletters passim).

The news, which was announced at 18.20 GMT on April 3, sent Chiron's share price up 4.6% to $47.92 and Novartis' stock traded 0.5% higher at $55.80 on Wall Street, reports MarketWatch.

Novartis says it agreed to the amended terms "as rapid closure of the transaction is in the best interest of public health as well as Chiron's employees and avoids the potential of value destruction for shareholders that would result from a failed transaction." Chiron's board has unanimously approved the revized offer.