Well CTAL joins CHRX as munchee, just as I wondered about a week or so back:
Message 14096873
WSJ.COM News Roundup
Catalytica Inc. said Dutch chemicals maker DSM NV has agreed to buy
its pharmaceutical business for about $750 million plus the assumption
of $50 million in debt.
DSM, the Netherlands' No. 2 chemicals maker, said the acquisition will
increase its life-science products sales to about 2.2 billion euros
($2.01 billion), representing 31% of overall sales based on 1999
figures.
Catalytica, Mountain View, Calif., which sells drug-development and
drug-manufacturing services, said it will operate as a unit of DSM,
which plans to expand its pharmaceuticals business in the U.S.
DSM supplies enzymes used in drugs and food. It also makes synthetic
rubbers, engineering plastics and polyethylene, used in garbage bags and
shampoo bottles.
DSM plans to spin off Catalytica's Combustion Systems and Advanced
Technologies units to Catalytica shareholders. Catalytica currently owns
85% of Catalytica Combustion.
The U.S. firm's shareholders will receive about $9 to $10 a share in
cash as well as shares in the new company called Catalytica Combustion
Systems Inc. that will be spun off. The cash amount depends on how much
Catalytica must pay in taxes for the spinoff.
DSM, based in Heerlen, Netherlands, will obtain Catalytica's plants
that produce drugs and drug ingredients for customers such as Glaxo
Wellcome PLC. Catalytica makes the antidepressant Wellbutrin and
smoking-cessation treatment Zyban for Glaxo.
Catalytica, which currently owns 85% of Catalytica Combustion, said
Morgan Stanley Capital Partners and certain Catalytica affiliates who
hold a total of about 32% of Catalytica's voting stock have signed
agreements to vote in favor of the transaction.
Meanwhile, Catalytica agreed to pay a fee of $20 million plus up to $5
million in expenses to DSM under certain circumstances, including the
termination of the agreement. The companies expect the transaction to
close in the fourth quarter.
Not much premium over the latest price, as the premium seems to have leaked into the price over the last few weeks.
I still own a little CTAL bought at around these prices - overall it has proved a disappointing investment.
Peter |
