Dennis Gillings founded Quintiles, one of the world’s largest contract research organizations, took it public, and last week won a battle to regain control of it.
Gillings and his partners will pay some $1.7 billion for Quintiles at $14.25 a share. That’s $3.25 more a share than he offered originally, adding some $400 million to the deal.
Gillings, who still owns 6 percent of Quintiles stock, formed a new venture, Pharma Services, to make his Quintile bid. To finance the deal, he secured $415.7 million in equity commitment from One Equity Partners and debt commitments of $875 million from Citicorp. Citicorp advised Pharma Services on the deal. Some $586 million in cash from Quintiles also is to be used to finance the deal, the company said in a statement.
Meanwhile, another Triangle firm is locked in a battle for control of its destiny.
Salix Pharmaceuticals and Canadian rival Axcan Pharma are involved in a takeover fight. Axcan launched a hostile bid of $8.75 a share, or $203 million, after recent talks about a possible merger were stopped by Salix.
Despite increasing sales of its drug Colazal, which fights ulcerative colitis, Salix stock has traded as low as $4.29 over the past year after hitting a high of $17.95. It has another drug, which fights traveler’s diarrhea, in the FDA approval pipeline.
Axcan also develops and sells intestinal drugs — one of the reasons the companies have talked on and off about working together.
Salix has adopted a poison pill defense against a hostile takeover.
Leon Gosselin, chairman, president and chief executive officer of Axcan, went public with the offer and sent out a press release containing the letter, citing a refusal of Salix to meet to discuss a buyout. Recently, David Mims, the chief operating officer of Salix, cancelled a meeting on short notice.
“We are resolute in pursuing this course, but continue to believe that a negotiated agreement is in the best interest of your stockholders,” Gosselin wrote.
Here’s a look at last week’s headlines:
MERGERS & ACQUISTIONS:
In Play: Salix Faces Hostile Takeover Bid by Canadian Firm:www.localtechwire.com/article.cfm?u=3799
Gillings Prevails — Quintiles Board Votes To Accept Founder’s$1.7B Offer:www.localtechwire.com/article.cfm?u=3795
RF Micro Expands Wireless Research With Acquisition of Colorado Company:www.localtechwire.com/article.cfm?u=3794
HumanCentric, Think Design Move from Partners to Merger:www.localtechwire.com/article.cfm?u=3756
Overture Networks Strikes Reseller Agreement With NEC:www.localtechwire.com/article.cfm?u=3763
In Heart of Bank Country, ATTUS Technologies Cashes in on Compliance Needs:www.localtechwire.com/article.cfm?u=3774
Countdown to Venture 2003: Engineous Software Seeks Funding For Launch of New Product:www.localtechwire.com/article.cfm?u=3760
Countdown to Venture 2003: Hemocellular Looks for Funding To Develop Means of Stopping Bleeding:www.localtechwire.com/article.cfm?u=3776
Countdown to Venture 2003: Elsinore Technologies Seeks To Broaden Foothold in Enterprise Management:www.localtechwire.com/article.cfm?u=3787
Countdown to Venture 2003: Gentris Looks for Investment To Ramp Up Clinical Diagnostic Test Kits:www.localtechwire.com/article.cfm?u=3798
A First for NC: State’s Venture Funding Cracks National Top 10:www.localtechwire.com/article.cfm?u=3773
High-Tech Eyewitness: Bravery, Tragedy at the Tip of the Spear: www.localtechwire.com/article.cfm?u=3733
Some Investment Advice: Avoid the Junkyard Dog Mentality, Which Too Many Have Embraced:www.localtechwire.com/article.cfm?u=3739
Looking To Invest? Outsourcing Technical Due Diligence Could Pay Off:www.localtechwire.com/article.cfm?u=3757
We Can’t Eliminate Human Errors; We Can Design Error-Tolerant Systems:www.localtechwire.com/article.cfm?u=3771
It’s a Great Time To Start a Business, Especially in Southeast:www.localtechwire.com/article.cfm?u=3788
On Leadership: The Ethics of Good Management Produce Excellent Management:www.localtechwire.com/article.cfm?u=3796