Novartis Raises Bid for Chiron
SAN FRANCISCO — Swiss drug maker Novartis quelled a potentially ruinous revolt by influential Chiron Corp. stockholders Monday when it increased its takeover offer for the troubled biotechnology company to $48 a share from $45.
The sweetened offer appeased at least two major stockholders holding a combined 17% Chiron stake that opposed the previous offer as too low, a Novartis spokesman said.
Novartis and Chiron also reworked terms of the deal so that a simple majority of investors holding Chiron’s outstanding stock as of March 3 is needed to approve the acquisition. Approval is almost certain because Novartis already owns 44% of Chiron’s outstanding stock.
The previous deal had called for a majority of non-Novartis shareholders to approve the acquisition.
Emeryville, Calif.-based Chiron also said Monday that it had settled lawsuits filed by shareholders who opposed the previous offer, but it declined to discuss the settlement terms.
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