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news.Croatian generic drug maker Pliva has judged the takeover offer from Icelandic company Actavis as "fair value", but warned that the businesses may overlap in some areas.
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The deal, worth $2.5 billion, “represents a superior business proposition which will best ensure the future development and growth of the combined company in all markets, including Croatia and that Actavis strongly believes that future of the global generic business is in consolidation,” according to Pliva.
However, the company added that “it is important to note that Actavis is present in markets where Pliva is also present and where overlap in business operations may exist.” The possibility of overlap raises the issue of job cuts at the company if the takeover offer is approved.
Actavis initiated a bidding war in March with an offer of HRK510 per ordinary share. US company Barr Laboratories subsequently made an offer for the drug maker, which Pliva was initially positive about, endorsing the proposed HRK705 in cash for each Pliva share held. Actavis has since raised its offer to HRK795 per share – valuing the company at $2.5 billion – while Barr has also amended its bid, although it has not made the amount public yet.