Merck KGaA bids for Schering

Merck KGaA, the German drug company, has made a hostile takeover approach for Schering, the contraceptive pill maker.

The move is worth 14.6 billion euros with Merck KGaA offering 77 euros per share, which is 15 per cent more than the closing price on Friday.

Despite Schering claims that the move is unsolicited and that it is also not enough, Merck KGaA remained buoyant about the bid.

“This is an ideal combination for both companies,” said Michael Roemer, Merck KGaA’s chairman, according to the BBC.

“It provides both companies with the unique opportunity to take a quantum leap and become more competitive and continue to thrive in the consolidating global pharmaceuticals industry.”

Schering said that it was not currently in negotiations with Merck KGaA and that it expected a formal offer to emerge sometime today.

MarketWatch reports that the Schering chief executive, Hubertus Erlen, said that the figures mentioned “seriously undervalued” the company.

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