UPDATE: Abbott makes $3.7 billion bid for Kos to expand in lipid management market
Illinois, USA-based health care major Abbott Laboratories, has entered into an agreement to acquire Kos Pharmaceuticals for $78.00 per share in case, for a total transaction value of $3.7 billion, net of $400.0 million cash currently held by Kos. The offer, on November 6, is at a premium of 56% to Kos' closing price of $50.09 the previous trading day, November 3, and the news caused the US specialty firm's stock to leap 53.8% to $77.06 by close of trading. Abbott's stock dipped 0.4% to $47.47.
Large as the premium might be, it is small compared to the 102% that is being paid by Merck & Co to acquire RNAi technology firm Sirna Therapeutics for $1.1 billion (Marketletter November 6).
Based in Cranbury, New Jersey, Kos develops and markets proprietary medicines for the treatment of chronic cardiovascular, metabolic and respiratory diseases. The company has a growing presence in the $20.0 billion lipid management market.
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