The sharp downturn in markets over recent weeks is delaying a final shareholder vote on the linkurl:merger;http://www.the-scientist.com/blog/display/54747/ of biotech companies linkurl:Invitrogen;http://www.the-scientist.com/article/display/18238/ and linkurl:Applied Biosystems;http://www.the-scientist.com/article/display/15680/ (ABI). The delay "is a direct consequence of the dramatic drop in share prices across the board since June," Peter Dworkin, vice president of investor relations and corporate communication at Applied Biosystems, told __The Scientist__. The two companies were scheduled to meet tomorrow (October 16) so shareholders could vote to finalize the merger. The deal was worth $6.7 billion in an estimated 45%-55% cash/stock split when it was announced on June 12, but is now valued at closer to $5.5 billion given current share prices, according to Invitrogen spokesperson Farnaz Khadem. The meetings have been postponed to allow shareholders time to consider a change to the terms that would nullify a clause stating that the merger would be considered a tax-free reorganization, Dworkin said. According to...
Interested in reading more?
Become a Member of
Receive full access to more than 35 years of archives, as well as TS Digest, digital editions of The Scientist, feature stories, and much more!