Option Activity Could Signal Imminent Warner Chilcott Deal

Shares of Warner Chilcott

closed just about flat Wednesday, but there was bullish option activity in the last hour of trading. A trade of 10,000 July 22/28 Call spreads at 2:58 pm and then another trade of 5,000 at 3:20 pm, indicates that someone may believe a deal is at hand. The Company confirmed on April 30 that they were reviewing strategic alternatives, which could include discussions with potential buyers. Warner Chilcott said it does not intend to disclose further developments regarding the process unless and until its Board has approved a specific course of action, or it otherwise deems further disclosure is appropriate or required. Warner Chilcott closed at $21.97, down $0.05 on Wednesday.