Warner Chilcott Plans To Buy Procter And Gamble For $3 Billion
August 24th, 2009 - 8:22 pm ICT by GDBy Meena Kar
Warner Chilcott Ltd, formerly called the Warner Chilcott PLC has reportedly shown an interest in buying Procter & Gamble for a tag price of $3 billion.
The Wall Street Journal on Sunday came up with reports that the drug maker Warner Chilcott, which primarily makes acne-related medications, offers hormone therapy and birth-control pills is willful of taking up Procter & Gamble. The company’s (P&G) Ohio-based drug-manufacturing unit was up for sale from December 2008. However there are at least 2 more organizations that are eying Procter & Gamble. They are rival drug manufacturer Forest Laboratories and Cerberus Capital Management .
Warner Chilcott has lately moved to Ireland from Bermuda. In the beginning of August Warner Chilcott had made public that in its second quarter, profits had risen by 67 %, particularly indicating increased sales of birth controls and dermatological products. Its shares saw a rise of 4.9% on Friday trading.
The deal with Procter & Gamble will probably be finalized by Monday, as per unidentified sources. The two companies have made nothing public till date on that regard.Six sources (backed by Bank of America Corp.), and JPMorgan Chase & Co. will supply the buyer with $4 billion, inclusive of $1 billion to met out the Chilcott debt.
In December Procter & Gamble had indicated that it would concentrate on its inclination for health business. In April P&G Chairman A.G.Lafley had mentioned that the pressure coming from generic products was particularly the major reason for selling off the business. Procter & Gamble is based in Cincinnati and has been hoping to find a good buyer for the company. Ali Dibadj, one analyst at Stanford C.Bernstein & Co. said on the matter, “There is encroachment on their(P&G) products from generic drugs and competitive products, which may have depressed the price.”
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