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Invitrogen and AB postpone merger

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 cor

Bob Grant
Bob Grant

Bob Grant is Editor in Chief of The Scientist, where he started in 2007 as a Staff Writer.

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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...

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