Update Forbes.com
Novartis confirms eyeing Berna Biotech counter bid UPDATE
12.18.2005, 04:21 PM
ZURICH (AFX) - (updates with more comments from Novartis, background)
Novartis AG confirmed that it is considering making a cash counter offer for
Berna Biotech AG, the Swiss vaccines maker which earlier this month agreed to an 591 mln sfr all-share offer from Dutch drugmaker Crucell NV.
'In order to prepare a potential competing cash offer, Novartis has requested from and has been granted by Berna the opportunity to perform a due diligence investigation,' Novartis said.
Swiss paper SonntagsZeitung today cited unnamed sources as saying that Novartis planned a counter bid of around 16 sfr per share.
Crucell's all share offer was equivalent to 15.72 sfr per share on Dec 1, but has now sunk to 13.40 sfr per share, the paper said.
Novartis said it is considering combining Berna with Chiron Corp, the US vaccines company that it is currently in the process of acquiring.
The combination of Berna and Chiron would offer complementary geographic coverage and product ranges, and Novartis would also gain access to the 'attractive proprietary technology platforms' of Berna, it said.
'In addition, a potential acquisition would assure continued Swiss ownership of an increasingly important health-care business with public health responsibilities,' it said.
It cautioned that at this point in time, key economic terms of a potential offer for Berna have not yet been determined and that no assurance can be given that Novartis will make an offer.
A deal would round off an acquisitive year for cash-rich Novartis.
It recently announced an agreed 5.1 bln usd acquisition of the 58 pct it did not already own in Chiron, it bought generics makers Hexal and Eon Labs for some 8 bln, and a portfolio of Bristol-Myers Squibb Co OTC drugs for 660 mln.
Stefan