Seeking Alpha

WSJ: Actavis nears acquisition of Forest Labs for up to $25B

  • Actavis (ACT) is in advanced negotiations to buy fellow pharmaceuticals provider Forest Laboratories (FRX) for up to $25B, the WSJ reports, adding that the deal could be announced today.
  • The figure is above Forest's market cap of $19.3B at the close of trade on Friday and compares with Actavis' $33.4B.
  • The acquisition would add to Actavis' recent purchase of Warner Chilcott and follow Forest's agreement in January to buy specialty-pharmaceutical company Aptalis Holdings.
  • One reason for the tie-up is to allow the companies to better negotiate with customers amid consolidation between U.S. Hospitals, insurers and doctors.
  • Carl Icahn could be set to benefit from the deal after he built up an 11.4% stake in Forest and successfully agitated for change in a bruising battle with the company's then management.
Comments (1)
  • chummybeagle
    , contributor
    Comments (114) | Send Message
     
    Say what you will about Icahn, the guy knows how to invest in large-cap tech and healthcare with a seemingly value approach. Impressive.
    18 Feb, 02:46 AM Reply Like
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