Zeneca Will Complete Acquisition Of Salick

UK pharmaceutical company Zeneca has decided to complete its purchase ofthe US cancer care company Salick Health Care. Zeneca purchased a 50% stake in the US firm in April 1995 with a view to a merger.

Under the terms of the merger agreement reached in 1995, Zeneca could call in the "callable puttable" stock in Salick any time within the next four years, and the "callable puttable" common stockholders had the right to require Salick to purchase their shares in October of this year.

A spokesperson told the Marketletter that Zeneca had decided to finalize the acquisition now (completion is expected on April 10) because it is in a strong cash position at the moment, and there is little strategic benefit in waiting.