Novartis, which already has a 42% stake in Chiron, made the offer to purchase the remaining shares on September 1, 2005 for $40 per share, or approximately $4.5 billion in total.
In a statement, Chiron said that it has an ongoing dialogue with Novartis regarding the company’s investment, but said that Chiron had not asked Novartis to make the offer.
“After thorough analysis and consideration of Novartis’ offer to acquire the shares of Chiron it does not already own for $40.00 per share in cash, the independent directors of Chiron have determined that this offer is inadequate,” Chiron concluded in a statement.
Many analysts have seen the Novartis move as an attempt to cement its presence in the expanding influenza market, which has been growing amid fears of a bird flu pandemic. Chiron has recently been struggling to correct quality control issues in its flu vaccine-producing factories in Germany and the UK, although the company was given a boost recently when the FDA submitted a positive report on the changes made in Chiron’s UK factory, raising the possibility that Chiron may be able to distribute its vaccine for the 2005/2006 flu season.