Lilly ‘improves merger offer’

Eli Lilly has this week announced an amendment of its merger offer with Icos. Lilly said that it reached an agreement with that company regarding its purchase offer.

Under the new terms of the proposed merger, Lilly is offering $34 (17.35 pounds) per share of the common stock of Icos and will purchase the company for a total amount in the region of $2.3 billion.

Lilly confirmed that the new offer amounted to an increase of $2 per share from $32 offered in the original agreement, with the company stating that the new price equated to its “best and final offer.”

The boards of directors of both companies have given their approval to the revised offer and merger agreement.

Sidney Taurel, chairman and chief executive officer of Lilly, commented that the company was confident that the shareholders of Icos would recognise the value and assurance in Lilly’s offer.

“We believe that this transaction delivers significant value to Icos shareholders and it is our final offer.”

Icos shareholders will be given the opportunity to vote on the merger following their review of the revised proxy statement.

Also this week, the board of Lilly announced a rise of 6.25 per cent in its quarterly dividend, increasing the annual indicated rate to $1.70 per share.