SYNTEX SUCCUMBS TO $5.3 BILL OFFER FROM ROCHE

US drugmaker Syntex, which is currently seen as facing patent expirations and discounting on its leading products, has reached a definitive agreement to be acquired by the Swiss major, Roche Holdings Ltd. Under the terms of the deal, which requires the approval of a majority of Syntex shareholders, the latter's shareholders would receive $24 per common share in cash, valuing the company at some $5.3 billion in total.

This is a premium of around 57% on Syntex' closing price on Friday April 29, the last trading day before the Roche offer was revealed on Monday May 2. The Syntex board of directors has unanimously recommended that shareholders wanting to receive cash tender their shares to Roche.

Syntex chairman and chief executive Paul Freiman said his firm had "spent many months intensively studying the health care environment, evaluating the increasingly competitive marketplace and analyzing our current and future prescription pharmaceutical product line." Given the speed of changes in the industry and a radically different competitive situation, he added, "we ultimately felt the need to align with a strong global partner." Mr Freiman also said he had discussed a takeover with other companies prior to Roche's offer being approved by the board. This was confirmed by First Boston's Joyce Albers, who said it had been "shopping itself around" looking for a way out.