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King Will Acquire Alpharma for $1.6 Billion, Gain Pain Drug
http://www.bloomberg.com/apps/news?pid=20601110&sid=a0eWEqYNW7C4
By Robert Greene

Nov. 24 (Bloomberg) -- King Pharmaceuticals Inc. will acquire the pain-drug developer Alpharma Inc. for $1.6 billion.

King will pay $37 a share in cash for Alpharma in a deal the boards of both companies approved, according to a statement from both companies distributed today by PR Newswire.

To contact the reporter on this story: Robert Greene in Washington at [e-mail].

Last Updated: November 24, 2008 08:05 EST

UPDATE 1-King Pharma to acquire Alpharma for about $1.6 bln
http://www.reuters.com/article/marketsNews/idINN2450242820081124?rpc=44&sp=true
Mon Nov 24, 2008 8:23am EST

BOSTON, Nov 24 (Reuters) - Drugmaker King Pharmaceuticals Inc (KG.N: Quote, Profile, Research, Stock Buzz) said on Monday it has agreed to acquire Alpharma Inc (ALO.N) for about $1.6 billion.

King's offer of $37 a share has been accepted by Alpharma's board and represents a premium of 10.4 percent over Alpharma's closing share price on Friday of $33.50.

King said it expects the transaction to add to its earnings per share, excluding one-time items, in the second full year following completion of the transaction, which it expects to occur by the end of this year.

King said it expects to achieve cost savings of $50 million to $70 million over the same period, mainly derived from general and administrative cost cuts and research and development savings achieved by avoiding the expense of new sales representatives for the launch of their new pain drug.