Takeover Bid Pushes German Drug Maker's Shares High
Posted on: Tuesday, 14 March 2006, 09:01 CST
Takeover bid pushes German drug maker's shares high
BERLIN, March 13 (Xinhua) -- Shares of German drug company Schering AG soared 21.8 percent Monday after its domestic rival Merck announced a takeover plan totaling 14.6 billion euros (18 billion U.S. dollars).
Schering shares rose to 81.35 euros (97 U.S. dollars) in Frankfurt stock exchange from 66.86 euros (79.69 U.S. dollars) at the end of its trading last week.
"This is an ideal merger for both companies," said Merck Chief Executive Michael Roemer.
The offer of 77 euros (91.77 U.S. dollars) per share, which was some 15 percent more than Friday's closing price, would make the combined pharmaceutical company more competitive on a global scale, Roemer said.
A merged Merck-Schering group would become the second largest drug maker in Germany with combined sales of some 11.2 billion euros (13.3 billion U.S. dollars).
However, Schering dismissed the offer, saying Merck's offer undervalued the company.
Germany's financial watchdog, BaFin, said Monday that it would examine the proposed deal to see if the procedure was routine.
Schering shares rose by some 10 percent last week before the takeover bid was made public.
Source: Xinhua News Agency - CEIS
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