King Pharmaceuticals can join the ranks of scorned suitors. Alpharma announced today that it has rejected the company's increased bid of $1.6 billion, or $37 per share, saying that it was "financially inadequate and not in the best interests of shareholders." King's originally bid $1.4 billion but Alpharma immediately declined the offer.
Once again, Alpharma urged shareholders not to act while the board explores other options. Those options include the possible sale of the company to King or to another party for a price in excess of $37.00 per share. Taking a page out of Carl Icahn's playbook, CEO Dean Mitchell said that other (unnamed) companies are considering bidding for the company, and that one potential suitor has already made a offer over $37 per share. "[W]e have received expressions of interest from multiple parties who contacted us following King's public disclosure of its proposal or who our financial advisors solicited at our request," Mitchell said in a statement. "We have entered into confidentiality agreements with a number of these parties who have now begun their due diligence review, and have already received a written preliminary indication of interest for a business combination from a party that includes a per share price in excess of the King offer of $37 per share."
When King made it's second bid, the company warned that any further resistance from Alpharma would be met with a proxy battle for control of the company's board. Looks like we have yet another buyout fight to watch.
- see Alpharma's release