This offer represents a 67% premium over the closing price of Alpharma class A common stock on August 4, 2008, the date of King’s initial private written proposal to Alpharma, a 54% premium over the closing price on August 21, 2008, the last trading day prior to public disclosure of King’s proposal, and a 60% premium over Alpharma’s average closing price during the 12-month period ended August 21, 2008. This price represents a total equity value of approximately $1.6 billion and an enterprise value of approximately $1.4 billion.
King believes that the proposed combination could receive all necessary regulatory approvals and be completed by the end of 2008. The company noted that it intends, if appropriate in order to facilitate its offer, to commence a consent solicitation to replace the board of directors of Alpharma with its own nominees.
Brian Markison chairman, president and CEO of King, said: “We have determined it is necessary to take our enhanced offer directly to Alpharma stockholders in order to deliver significant value to them as expeditiously as possible. This compelling transaction would deliver superior value to our respective stockholders and create a stronger platform to deliver innovation to patients, prescribers and customers.”