The bidding war for Croatian drugmaker Pliva DD heated up again Thursday as Actavis Group raised its offer to $2.5 billion, trumping a $2.3 billion overture from Barr Pharmaceuticals Inc.
Barr's per-share offer of 743 kuna ($130.04) has received the backing of Pliva's supervisory board. Under terms of the bid, Pliva stockholders as of Aug. 22 would also receive a dividend of 12 kuna for each share held.
Iceland's Actavis on Thursday lifted its bid to 795 kuna a share in cash from 723 kuna, according to a statement posted on its Web site. The generic drugmaker is also offering an additional 12-kuna-per-share dividend. Actavis controls 20.8% of Pliva's outstanding shares through a combination of share ownership and options to acquire the company's equity.
Actavis first offered to buy Pliva back in March, for 570 kuna per share. A bidding war for the company, which on the basis of sales ranks as the largest drugmaker in Eastern Europe, was sparked after Pliva's board endorsed the counteroffer from Barr in June.
The tender process for Barr's latest offer was officially triggered Aug. 18, when it was published in the country's "Offical Gazette." It's now expected to close 30 days after Actavis' bid is published, which is expected to take place soon. Actavis' tender offer must run for a minimum of 30 days and a maximum of 60 days.
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