Mylan Laboratories will pay a 60% premium on King Pharmaceuticals’ market value.
“The Wall Street Journal” reports that pharmaceutical company Mylan Laboratories (NYSE: MYL), the largest generic manufacturer in the US, has announced that it will acquire King Pharmaceuticals (NYSE: KG) for $4 billion. Mylan, the largest rival of Israeli company Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA) in the US generic market, wishes to penetrate the ethical drug market, in which King operates.
King shareholders will receive 0.9 Mylan shares for each King share they hold. The deal price reflects a 60% premium on Friday’s market price of $10.37 for the King share.
The deal will leave King shareholders with 44%, having a market value of $5 billion.
Published by Globes [online] - www.globes.co.il - on July 26, 2004