Institutional pharmacy giant Omnicare launched a takeover bid of $1.5 billion, including assumed debt, for rival NeighborCare. Omnicare said the $30 per-share cash offer represents a 70% premium over NeighborCare's closing price on May 21 -- the last trading day before the offer was announced publicly -- and a 40% premium over the 30-day trading average prior to the announcement. It is $4 more than NeighborCare's previous all-time high, Omnicare said. In a letter to NeighborCare shareholders, Joel Gemunder, president and chief executive officer of Omnicare, said his company had no choice but to launch a tender offer after NeighborCare's board twice rejected similar offers. The offer is scheduled to expire July 7. Omnicare, Covington, Ky., is the nation's largest provider of pharmacy and related services to nursing homes and skilled-nursing facilities with operations in 47 states and the District of Columbia. It posted 2003 revenue of $3.47 billion. NeighborCare, Baltimore, operates in 32 states and the District of Columbia and reported revenue of $699 million for the fiscal year ended Sept. 30, 2003. -- by Mary Chris Jaklevic
Omnicare makes hostile bid for NeighborCare
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