PLIVA takeover battle: Actavis now outbids Barr

Actavis has formally announced its offer for PLIVA, the Croatian pharmaceutical company also coveted by Barr Laboratories, an American pharmaceutical company.

Both companies claim to offer the best future prospects for PLIVA, although the latest bid from Actavis, an Icelandic generics manufacturer, of approximately $2.5 billion (1.3 billion pounds) is greater than Barr’s, which $2.3 billion.

In response, Barr said it was evaluating the Actavis offer and reiterated its belief that it could offer PLIVA a better future than Actavis. Barr claims its proposal represents “extraordinary potential” because the product portfolios and research capabilities of both companies are “largely complementary”.

In addition, Barr intends to retain the PLIVA name and base its European headquarters in Croatia, with the possibility of moving the production of some products into eastern Europe.

Actavis, however, also said it plans to consolidate its manufacturing capabilities in Croatia and preserve the PLIVA brand, while planning further investment into PLIVA’s research and development facilities.

Robert Wessman, chief executive officer of Actavis, commented: “Our increased offer underlines our commitment to bringing PLIVA into the Actavis Group.”

“We believe very strongly that the combination of our two businesses will create one of the most exciting companies in our industry and a solid platform from which to achieve substantial future growth.”

“Our offer overwhelmingly represents the best option for all of PLIVA’s stakeholders,” he added.

Once the Actavis offer is published in the Croatian Official Gazette, the formal tender process can start, taking between 30 and 60 days to complete.

Last week, PLIVA’s board said it recommended Barr’s offer to shareholders.

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