Deals of the Day: Bidders Line Up for MGM

A subsidiary of Abbott Laboratories has started a cash tender offer for Facet Biotech Corp., the drug and medical products company said Tuesday. Earlier this month, Abbott said it had agreed to buy Facet for about $450 million in cash, in order to increase expanding its access to biotechnology drugs, including a potential treatment for multiple sclerosis.

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Abbott is offering $27 per share, a 67 percent premium to Facet’s $16.21 closing stock price on March 9, the day the deal was announced.

The acquisition has been approved by both companies’ boards and is expected to close in the second quarter.

Abbott, based in North Chicago, Ill., has valued the deal at about $722 million, less Facet’s projected cash and marketable securities at closing of approximately $272 million.

Abbott’s buyout follows last December’s rejection by Facet shareholders of a bid worth $17.50 per share for the company by Biogen Idec. [Read the full article]

The ousted chairman of Cadbury, once a champion of takeovers, has started questioning the foundations on which he built his career.

A week after Kraft (KFT) won control of the confectionery company, Roger Carr suggested the rules need changing to protect businesses against hostile bids. "While capitalism is efficient, it may be unreasonable that a few individuals with weeks of share ownership can determine the lifetime destiny of many," he admits.

The former director of the Bank of England is proposing that bids succeed only if they are backed by holders of at least 60 per cent of shares—not the current simple majority. And he wants hedge funds and other speculators barred from voting shares bought during a bid.

It is a Damascene conversion for a businessman whose success was based on takeovers. He was in charge of acquisitions at the conglomerate Williams Holdings when it bought brands including Yale, Chubb, Polycell and Crown Paints. [Read the full article]

Raiffeisen International proposed merger with its unlisted Austrian parent continued to trouble investors on Tuesday as management spelled out details of the proposed deal.

Shares in the central and eastern Europe-focused lender slid 3 per cent amid lingering concerns that Raiffeisen free-float shareholders could be disadvantaged through a tie-up with RZB.

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Raiffeisen International proposed merger with its unlisted Austrian parent continued to trouble investors on Tuesday as management spelled out details of the proposed deal.

Shares in the central and eastern Europe-focused lender slid 3 per cent amid lingering concerns that Raiffeisen free-float shareholders could be disadvantaged through a tie-up with RZB.

You have viewed your allowance of free articles. If you wish to view more, click the button below. [Read the full article]

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