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| Pfizer to acquire Wyeth for $68 bn |
| Press Trust of India / New York Jan 26, 2009, 19:53 IST |
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Pharmaceutical major Pfizer today said it will buy out rival firm Wyeth for $68 billion in a cash-and-stock transaction.
In a filing to the New York Stock Exchange, Pfizer today said it has entered into a definitive-agreement with Wyeth "under which Pfizer will acquire Wyeth in a cash-and-stock transaction currently valued at $50.19 per share, or a total of approximately $68 billion".
The boards of directors of both the companies have approved the combination. The two firms were in talks since June last year for a possible merger.
"The transaction will be financed through a combination of cash, debt and stock. A consortium of banks has provided commitments for a total of $22.5 billion in debt," the filing added.
Under the terms of the transaction Wyeth shareholders would get $50.19 per share, paying $33 a share in cash and Pfizer stocks at $0.985 a share.
"The transaction provides immediate value to Wyeth shareholders through the cash component, as well as continued participation in the future prospects expected to result from the combination through their ownership of about 16 per cent of Pfizer's shares," the filing added.
The Wall Street Journal had earlier reported that Pfizer has teamed up with a group of five banks -- Goldman Sachs Group, Bank of America, JP Morgan Chase, Barclays Capital and Citigroup -- each of which has agreed to provide $4.5 billion in financing.
"The combination of Pfizer and Wyeth... will produce the world's premier biopharmaceutical company whose distinct blend of diversification, flexibility, and scale positions it for success in a dynamic global health care environment," Pfizer Chairman and Chief Executive Officer of Pfizer Jeffrey B Kindler said.
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