Bayer makes move for Schering
Bayer has officially launched its takeover offer for Schering which will eventually see the companies combine their businesses under the name "Bayer Schering Pharma". The company will be headquartered in Berlin.
As announced on 23 March the offer stands at Euro 86 cash per Schering share, representing a total transaction value of approximately €16.5bn - around 61% above the unweighted 12-month average price and 39% above the closing share price before the initial Merck KGaA takeover rumours surfaced. Merck's unsolicited all-cash offer of 12 March was worth €77 per share and was adjudged by Schering to "significantly undervalue" the company. The deadline for acceptance of Bayer's offer is the close of 31 May.
"The proposed takeover of Schering is in line with our strategic objective to further grow our health care business, especially in the area of pharmaceutical specialty products," said Werner Wenning, Bayer Management Board chairman.
The Executive Board of Schering is supporting the offer and recommending it to its shareholders. "The price of €86 per share in connection with several other important commitments is a good offer," said Dr Hubertus Erlen, chairman of Schering's Executive Board. "Joining Schering and Bayer will form a leading specialised pharmaceutical company. Both businesses are complementary and follow the same strategy. Together they will be even more competitive internationally."
The new company will rank among the world's top ten providers of pharmaceutical specialty products.