Novartis alters deal to speed up takeover

Novartis has said that an adjustment to the merger bid for Chiron to speed up the closure of the deal has been accepted by the independent directors of the company.

Chiron shareholders, representing 17 per cent of the share interest in the company, are now declaring to Chiron and Novartis that they intend to vote in favour of the transaction, which stands at $48 per share.

This values each share at 32 per cent higher than the $36.44 that the shares were worth before Novartis announced its initial takeover ? the unaffected price ? bid in October 2005.

Novartis has said that a quick resolution to the pending deal will be in the “best interest of public health” in addition to the best interest of employees of the targeted company.

A deal would also allow Novartis to make investments in Chiron’s production of influenza vaccines and vaccines against a potential H5N1 pandemic sooner.

The transaction is now dependent on a majority of all the outstanding shares voting in favour of the deal. Just under half of the shares in the company (44 per cent) are held by Novartis.

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