Mylan Laboratories will most likely not close on a merger with King Pharmaceuticals under the current terms.
Mylan’s Vice Chairman and CEO, Robert J. Coury, stated, “In connection with our ongoing reviews of King and our proposed acquisition of King, we continue to assess King’s statements that it will restate its previously reported financial results for 2002, 2003 and the first six months of 2004 and that it is evaluating whether financial results for any earlier periods require restatement. As previously announced, any restatement of King’s financial statements results in a failure to satisfy a condition of Mylan’s obligation to close the acquisition of King.”
“While we are monitoring and reviewing these accounting issues and a number of other matters concerning King, in light of timing issues, we believe that it is highly unlikely that the parties would be able to consummate the merger contemplated by our merger agreement with King by February 28, 2005, which is the date in the merger agreement after which generally either Mylan or King may terminate the agreement.”
“Also, in light of our ongoing review, we believe that it is unlikely that Mylan will consummate the acquisition of King on the terms, including the economic terms, set forth in the existing merger agreement. While our continued study may lead to a renegotiation of the existing merger agreement, there can be no assurance that a revised agreement will be reached or that any transaction will occur. Until a resolution is reached, Mylan intends to have no further comment on this situation.”
If the merger does go through, it is supposed to be completed by February 28.
Mylan has also had a buyout offer from its largest shareholder,Carl Icahn, who’s bid is $20 per share. Icahn opposes the King deal.
Murdok | Breaking eBusiness News
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