Novartis declined to comment today on a newspaper report that it would offer a premium to take over biotechnology firm Serono.
Sources familiar with the situation have told Reuters that major pharmaceutical companies, including Novartis, have been asked by Serono to prepare bids for an auction of the Geneva-based firm that could take place early in 2006.
Over the weekend, Switzerland's SonntagsZeitung newspaper reported that Novartis would offer $799.39 a share to public holders of Serono stock. It quoted insiders at Serono's headquarters.
Chief Executive and Chairman Ernesto Bertarelli and his family, who own around 64 percent of the company, would be offered $913.76 a share, the newspaper reported. Under Swiss takeover law it is acceptable to make a higher offer to the holder of a majority of a company's shares. Serono stock was 0.2 percent higher, while the Swiss Market Index was little changed. Novartis was 0.2 percent lower.
Serono has declined to comment on any takeover speculation beyond its confirmation that it had hired bankers from Goldman Sachs to help it investigate its strategic options.
Looks like Christmas for the Bertarelli family will be a little late, but well worth waiting for! Insider believes that the merger is ON. However, the name for the new company (Seronovartis)...... that is just Insiders' little joke!
Source: Reuters
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