Bingo -looks like a formal bid finally. :+ )
10/25 04:36 =DJ NEWS SNAP: Warner Chilcott Receives 837p Approach
By Elena Berton
Of DOW JONES NEWSWIRES
LONDON (Dow Jones)--Women's healthcare specialist Warner Chilcott PLC (WCRX) Monday said it has received an approach from one of its three suitors, priced at
837 pence a share. While the company declined to identify the bidder, a
person familiar with the situation told Dow Jones Newswires that the approach
was from a consortium led by Goldman Sachs Capital Partners (GS).
Numis Securities analyst Robin Gilbert said the level of the offer is higher than initially expected, and the eventual price could top 900 pence.
"The presence of two other bidders leads to expectations that an auction is developing," he said.
Warner Chilcott also said that discussions with the other two parties that have expressed an interested are continuing. These are thought to be Credit
Suisse First Boston Group (CSFF.YY) and private equity group Bain Capital (
BCI.XX), which has teamed up with Carlyle Group (CAY.XX) and with Thomas H. Lee
(THL.XX).
The Goldman Sachs consortium comprises U.S buyout specialists Blackstone Group (BGP.XX) and Texas Pacific (TPG.XX).
These companies couldn't be immediately contacted for a comment. Warner Chilcott said it will make a further announcement as soon as possible.
At 0824 GMT, its shares were up 1.8% at 833 pence.
A report in the weekend press said the Goldman-led group had tabled a bid at over 835p a share, valuing Warner Chilcott at GBP1.56 billion, which is
substantially higher than the price of 800 pence a share previously indicated.
The company, formerly known as Galen, focuses on women's healthcare products, including estrogen replacement therapies, contraceptives and prenatal vitamin
supplements.
Other products include acne drug Doryx and Sarafem, a treatment for a severe form of premenstrual syndrome.
Warner Chilcott's narrow focus has attracted the interest of private equity, since women's healthcare products tend to be profitable, cash-generative and
more resilient to pricing pressures than other products.
Company Web site: warnerchilcott.com |
