Alpharma Rejects King's $1.6 Billion Takeover Bid

September 26, 2008 7:21 p.m. EST

New York, NY (AHN) - Alpharma Inc's board of directors voted unanimously to reject the $1.6 billion takeover bid offered by King Pharmaceuticals. The bid, which valued Alpharma at $37 a share, was inadequate the company said.

The announcement marks the second time Alpharma has rejected a King takeover bid. King had originally made a $33 a share offer on August 4, which was rejected and led the company to bump the offer to $37 a share on September 11.

"We believe other offers or alternatives to the King offer may emerge from this process that will provide shareholders with greater value than $37 per share," Alpharma President and Chief Executive Dean Mitchell said, according to the Associated Press.

King Pharmaceuticals offered the following response to the Alpharma decision: "Our $37 per share cash tender offer, which is not conditioned on financing, is the only outstanding offer for Alpharma and would provide its shareholders with a 67% premium over Alpharma's closing price on August 4, 2008, the date of our initial written offer."

Acquiring Alpharma would help King gain a competitive edge in the pain management market.