Javelin Pharmaceuticals Inc (JAV)

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Hospira, Inc. And Javelin Pharmaceuticals Inc. Enter Into Definitive Merger Agreement For Hospira To Acquire Javelin Pharmaceuticals; Hospira Will Initiate Tender Offer
Monday, 19 Apr 2010 09:16am EDT
Hospira, Inc. and Javelin Pharmaceuticals, Inc. announced that the companies have entered into a definitive merger agreement providing for the acquisition of Javelin by Hospira for $2.20 per share in cash, or approximately $145 million. Hospira expects to commence a tender offer for all outstanding shares of Javelin common stock on or about April 21, 2010, in accordance with the terms of the merger agreement. Hospira entered into the merger agreement following an extensive evaluation of Javelin's business and its prospects. The offer is conditioned on the tender of a majority of Javelin's shares calculated on a fully diluted basis. Hospira and Javelin also entered into a loan facility under which Javelin may borrow up to $4.5 million to fund Javelin's operating activities prior to closing a merger with Hospira, approximately $8.3 million for Javelin's repayment of the principal and accrued interest incurred under a similar financing arrangement entered into with Myriad Pharmaceuticals (MPI) and $4.4 million for Javelin's payment of the termination fee and certain stipulated expenses that Javelin may be required to pay MPI following termination of its merger agreement with MPI.

http://www.reuters.com/finance/stocks/keyDevelopments?rpc=66&symbol=JAV×tamp=20100419131600