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Biotech / Medical : Pharma News Only (pfe,mrk,wla, sgp, ahp, bmy, lly)

PFE 25.04

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Nov 21 9:30 AM EST

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To: Anthony Wong who wrote (279)	6/11/1998 11:22:00 AM
From: Anthony Wong	Read Replies (2) of 1722

Astra Won't Comment On Reports Of $10 Billion Payout To Merck June 11, 1998 5:51 AM STOCKHOLM -(Dow Jones)- Swedish pharmaceutical company Astra AB is keeping mum about ongoing talks to restructure the U.S. sales company it operates jointly with Merck & Co., and won't comment on a report Thursday that it could be forced to pay up to $10 billion to buy its partner out of the venture. "We are in talks with Merck but discussions are not completed. Once, and if, we reach an agreement we will make it public," said an Astra spokesman reached at headquarters outside Stockholm. The spokesman wouldn't offer a timetable for when talks may be completed. According to an article in Thursday's Financial Times, Astra (A) and Merck (MRK) will unveil an agreement next week regarding the Astra Merck sales venture. The article states Astra could be forced to pay Merck up to $10 billion if it completes a merger with another company within the next 10 years. "The pay-out clause is likely to form part of a deal ... through which Astra will gain control of the U.S. joint venture," the Financial Times wrote. According to the article, Astra will pay $1.5 billion up front and the rest over a 10-year period. However, should Astra merge with a third party during that period, it will be able to buy Merck out of the joint venture immediately at a cost of up to $10 billion, the Financial Times report said. Astra last week confirmed discussions with Merck, but has made no comment on details. That news sent Astra's share price soaring in Stockholm, mainly because analysts expect Astra to enter into an alliance or merge with a third company once the Merck venture has been cleared up. In morning trading Thursday, Astra's shares were down 1.5 kronor at SEK162.5 ($20.36), in line with the overall Stockholm market. Copyright (c) 1998 Dow Jones & Company, Inc. All Rights Reserved.

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