Genesis Health Ventures, Kennett Square, Pa., bowed out of its five-month-long battle to acquire institutional pharmacy provider NCS Healthcare, Beachwood, Ohio, and NCS accepted a bid by Omnicare, Covington, Ky. The Delaware Supreme Court last week overturned a lower court ruling that would have allowed Genesis to proceed with its controversial purchase of NCS. Omnicare, which had made a competing and higher offer, had challenged the two firms' agreement and last week raised its bid for NCS to $5.50 per share, or roughly $130 million, from $3.50 per share. Genesis would have paid $1.60 per share, or about $38 million, under its original agreement with NCS. It offered $3.50 per share last week when NCS asked its suitors to submit their "best and highest offer." Genesis will receive a $22 million breakup fee for the termination of its agreement with NCS. "NCS was a nearly bankrupt pharmacy provider and with the escalating costs, we thought it prudent not to go further," Genesis spokeswoman Lisa Salamon said. "To pursue the other costly angle and go to court -- it still didn't guarantee a positive outcome." -- by Julie Piotrowski
Genesis gives up pursuit of pharmacy provider
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