Market Overview

Benzinga's M&A Chatter for Tuesday April 22, 2014

The following are the M&A deals, rumors and chatter circulating on Wall Street for Tuesday April 22, 2014

Lilly to Acquire Novartis Animal Health for Approximately $5.4B in Cash

The Deal:
Eli Lilly (NYSE: LLY) announced Tuesday an agreement to acquire Novartis Animal Health (NYSE: NVS) for approximately $5.4 billion in cash. Under the terms of the agreement, Lilly will acquire all assets of Novartis Animal Health. The deal is expected to close by the end of Q1 2015.

Eli Lilly shares closed Tuesday at $60.03, a loss of more than 1%, while Novartis shares closed at $86.56, a gain of more than 1%.

Novartis Acquires GSK Oncology Products Business for $14.5B

The Deal:
Novartis (NYSE: NVS) announced Tuesday that it has agreed to acquire GlaxoSmithKline oncology products for $14.5 billion payment, plus up to $1.5 billion contingent on a development milestone. Under the agreement, Novartis would have opt-in rights to GSK's current and future oncology R&D pipeline.

Novartis agrees to divest its Vaccines business to GSK, currently excluding the flu business, for $7.1 billion plus royalties, and includes a $5.25 billion upfront payment and up to $1.8 billion in milestones. Novartis has initiated a separate sales process for its flu business.

The deal is expected to close during the H1 of 2015.

GlaxoSmithKline closed Tuesday at $55.30, a gain of 4%.

UPDATE: Valeant Bids $48.30/Share in Cash, 0.83 Shares of Valeant Stock for Each Allergan Share

The Offer:
Valeant Pharmaceuticals (NYSE: VRX) announced Tuesday that it has submitted a merger proposal to the Allergan (NYSE: AGN) Board of Directors, under which each Allergan share would be exchanged for $48.30 in cash p;us 0.83 shares of Valeant common stock. Pershing Square, Allergan's largest shareholder with a 9.7% stake, has agreed to elect only stock consideration in the transaction and intends to remain a significant long-term shareholder of the combined company.

Valeant reports commitments of $15.5B for the cash portion of the deal from Barclays and RBC Capital Markets.

Allergan's Board confirmed receipt of the proposal and will review it.

Allergan shares closed at $163.25, a gain of 15%, while Valeant shares gained 7.5% to close at $135.41.

Posted-In: News Hedge Funds Movers & Shakers Management Insider Trades M&A Movers General

 

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