Selloff or Market Correction? Either Way, Here's What to Do NextSee Overvalued Stocks

No auction for Vectura as Carlyle declares $1.3 billion takeover bid final

Published 08/10/2021, 12:10 PM
Updated 08/10/2021, 01:16 PM
© Reuters.
PM
-

By Yadarisa Shabong

(Reuters) -The takeover battle between tobacco giant Philip Morris (NYSE:PM) and private equity firm Carlyle for inhaled treatments maker Vectura will not be heading to the auction ring on Wednesday after Carlyle said it will not raise its bid.

U.S.-based Carlyle on Tuesday declared final its 155 pence per Vectura share offer, which it sweetened last week to value the British company at about 958 million pounds ($1.33 billion). The proposal is below an increased 165 pence bid from Philip Morris on Sunday.

Britain's takeover regulator on Monday had intervened in the battle, saying that it would enter a rare head-to-head auction https://www.reuters.com/world/uk/britains-takeover-regulator-intervenes-battle-drugmaker-vectura-2021-08-09 if the bidders do not make final bids by Tuesday 1600 GMT (1700 BST).

Only a handful of British takeover fights have gone to auction, with the highest profile in recent years being the battle in 2018 for pay-television group Sky when Comcast (NASDAQ:CMCSA) emerged as the winner of a single-day three round blind auction.

London-listed shares of Vectura closed at 163.4 pence on Tuesday after hitting a more than five-year high of 176 pence earlier in the session. They have gained 33% in value since Carlyle's first offer in May.

Vectura has been the target of several approaches since May from the U.S.-based groups, which are eyeing the drugmaker's expertise with inhalable formulations and device designs for respiratory therapies for illnesses such as asthma.

The London-listed company had voiced its support for the Carlyle offer last week, saying that it may be better positioned under the ownership of the private equity firm, while noting the uncertainties that could arise for its stakeholders as a result of being owned by the Marlboro cigarette-maker.

However, Vectura withdrew its backing and also withheld support for the higher offer from Philip Morris following the intervention from the Takeover Panel.

Vectura did not immediately respond to a request for comment.

A deal with either one of the U.S. companies would require shareholder approval.

($1 = 0.7229 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.