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DewDiligence

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DewDiligence

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Re: DewDiligence post# 65581

Monday, 09/01/2008 3:56:27 AM

Monday, September 01, 2008 3:56:27 AM

Post# of 251866
Shionogi to Acquire SCRX at a 61% Premium to
Market in Yet Another “Cheap Dollar” Buyout

http://www.reuters.com/article/marketsNews/idINT9202720080901

›Mon Sep 1, 2008 3:09am EDT

TOKYO, Sept 1 (Reuters) - Shionogi & Co, Japan's sixth-largest drug maker by market value, said it planned to buy U.S.-based Sciele Pharma Inc (SCRX) for $1.4 billion as it seeks to expand in the key U.S. market.

Shionogi said it will offer $31 per Sciele Pharma share, a 61 percent premium to the U.S. firm's closing share price of $19.27 on Friday.

Georgia-based Sciele Pharma specialises in branded prescription products focused on cardiovascular, diabetes, women's health and pediatrics.

Shionogi, whose mainstay business is antibiotics, said in a statement that the acquisition would allow it to use Sciele's sales network to expand sales of its drugs.

Eager to expand globally, Japanese pharmaceutical makers have been ploughing [sic] money made on top-selling drugs into acquisitions.

Takeda Pharmaceutical Co Ltd, Japan's top drug maker, No. 3 ranked Daiichi Sankyo and fourth-largest Eisai Co Ltd have all announced multi-billion dollar overseas deals in the past few months [#msg-31859175].

The deal is also the latest in a string of overseas acquisitions by financially sound Japanese companies hunting for opportunities outside their home market.

Already this year, announced outbound acquisitions from Japan total $42 billion, according to Thomson Reuters data, nearly doubling the figure for all of 2007.

Shionogi's bid is expected to start within 10 business days and will be completed after 20 days following the launch. [In other words, it’s a cash tender offer—no shareholder vote required.]

Shionogi's shares closed down 0.6 percent at 2,460 yen ahead of the announcement.‹


<font size=2><font color=red>“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

“The efficient-market hypothesis may be
the foremost piece of B.S. ever promulgated
in any area of human knowledge!”

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