Biotech Values

[DewDiligence]

Wyeth Shareholders Approve Merger With Pfizer

[The outcome of the shareholder vote was never in doubt, of course. In these kinds of transactions, shareholders of the acquired company who don’t like the merger generally sell their shares before the record date for the shareholder vote.]

http://online.wsj.com/article/SB124810198023565363.html

›By PETER LOFTUS
July 21, 2009

Wyeth shareholders on Monday approved a takeover by Pfizer Inc., helping to lay the groundwork for the deal to close this year.

About 98% of votes cast supported the deal, according to a preliminary tally announced at a shareholder meeting.

The transaction is still subject to clearance by U.S. antitrust regulators. On Friday, Pfizer said the European Commission had approved the deal, subject to the sale of certain animal-health assets in Europe. U.S. regulators also expect animal-health divestitures because Pfizer and Wyeth have overlapping businesses.

In January, Pfizer agreed to acquire Wyeth, of Madison, N.J., in a cash-and-stock deal valued at about $68 billion. New York-based Pfizer, which expects the sale to close by the end of the year, wants to diversify its business and gain access to fast-growing biotechnology drugs and vaccines as the 2011 patent expiration looms for its blockbuster cholesterol drug Lipitor. Pfizer also expects cost savings, with a 15% reduction in the combined entity's work force planned.

Wyeth Chief Executive Bernard Poussot said the combined entity will achieve more than either company could have alone. But he acknowledged "mixed feelings" and "sadness to see the company disappear as we know it today," as well as the pending job losses.‹