DARMSTADT, Germany (AFX) - Merck KGaA plans to submit an official takeover offer for Berlin-based pharmaceutical Schering AG in the next few days, sources told AFX News' partner dpa-AFX.
Earlier today, Schering said it had been informed that Merck intends to make a 77 eur per share cash offer for the company.
The offer would value Schering at 14.9 bln eur, compared to its current market capitalisation of 12.9 bln, based on the share price of 66.86 eur at Friday's close.
The acquisition will be financed through own and borrowed capital, and also in the mid-term through a capital increase, the sources said.
But, a sale of a larger share of the Merck family's stake in the company as a means to finance the acquisition is not planned, a person familiar with the matter said, denying an earlier report in manager-magazin saying the family would dispose of around 20 pct of its 73 pct stake to partly finance the buy.
Nevertheless, the family will contribute, through various means, with around 1 bln eur to help finance the purchase, the sources said.
Merck, according to the sources, consider the 77 eur per share offer to be good as it represents a premium of 35 pct to the Schering share price in the past three months.
Schering earlier today said its board considers the offer to 'significantly undervalue' the company 'and its prospects as an independent specialized pharmaceutical company'. ragnhild.kjetland@afxnews.com fd//rkj/cml COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited
Earlier today, Schering said it had been informed that Merck intends to make a 77 eur per share cash offer for the company.
The offer would value Schering at 14.9 bln eur, compared to its current market capitalisation of 12.9 bln, based on the share price of 66.86 eur at Friday's close.
The acquisition will be financed through own and borrowed capital, and also in the mid-term through a capital increase, the sources said.
But, a sale of a larger share of the Merck family's stake in the company as a means to finance the acquisition is not planned, a person familiar with the matter said, denying an earlier report in manager-magazin saying the family would dispose of around 20 pct of its 73 pct stake to partly finance the buy.
Nevertheless, the family will contribute, through various means, with around 1 bln eur to help finance the purchase, the sources said.
Merck, according to the sources, consider the 77 eur per share offer to be good as it represents a premium of 35 pct to the Schering share price in the past three months.
Schering earlier today said its board considers the offer to 'significantly undervalue' the company 'and its prospects as an independent specialized pharmaceutical company'. ragnhild.kjetland@afxnews.com fd//rkj/cml COPYRIGHT Copyright AFX News Limited 2005. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News. AFX News and AFX Financial News Logo are registered trademarks of AFX News Limited