King Pharmaceuticals, Inc. (NYSE: KG) today announced that it commenced
a tender offer, through a wholly owned subsidiary, to acquire all of the
outstanding shares of Class A Common Stock of Alpharma Inc. (NYSE: ALO)
for $37 per share in cash. This offer represents a 67% premium over the
closing price of Alpharma Class A Common Stock on August 4, 2008, the
date of King’s initial private written
proposal to Alpharma, a 54% premium over the closing price on August 21,
2008, the last trading day prior to public disclosure of King’s
proposal, and a 60% premium over Alpharma’s
average closing price during the twelve-month period ended August 21,
2008. This price represents a total equity value of approximately $1.6
billion and an enterprise value of approximately $1.4 billion.
The tender offer is scheduled to expire at 5:00 pm, New York City time,
on Friday, October 10, 2008, unless extended.
The tender offer documents, including the Offer to Purchase and the
Letter of Transmittal, will be filed today with the Securities and
Exchange Commission (“SEC”).
Alpharma stockholders may obtain copies of the tender offer documents
when they become available at www.sec.gov.
Free copies of such documents can also be obtained when they become
available by calling Innisfree M&A Incorporated, toll-free at (877)
687-1875.
As King previously indicated, it intends, if appropriate in order to
facilitate the offer, to commence a consent solicitation to replace the
Board of Directors of Alpharma with its own nominees.
Credit Suisse and Wachovia Securities are acting as financial advisors
to King and Dewey & LeBoeuf LLP is acting as legal counsel. Innisfree
M&A Incorporated is acting as information agent for King’s
offer.
About King Pharmaceuticals, Inc.
King, headquartered in Bristol, Tennessee, is a vertically integrated
branded pharmaceutical company. King, an S&P 500 Index company, seeks to
capitalize on opportunities in the pharmaceutical industry through the
development, including through in-licensing arrangements and
acquisitions, of novel branded prescription pharmaceutical products and
technologies that complement the Company’s
focus in specialty-driven markets, particularly neuroscience, hospital
and acute care. King strives to be a leader and partner of choice in
bringing innovative, clinically-differentiated medicines and
technologies to market.
Forward-looking Statements
This press release contains forward-looking statements. King
Pharmaceuticals, Inc. (“King”)
disclaims any intent or obligation to update these forward- looking
statements.
