(Updated at 5:45 p.m. ET with information about a PharMerica letter to Omnicare.)
PharMerica rejects Omnicare purchase bid
Omnicare had announced a $716 million, all-cash offer for Louisville-based PharMerica.
PharMerica said the proposal, which was made July 19, undervalues the company and “is not in the best interest of PharMerica or its stockholders,” according to a PharMerica news release. The company also said the antitrust clearance for the deal, which could combine what it says are the top two companies in the institutional pharmacy sector, would be “difficult to achieve.”
Omnicare, based in Covington, Ky., responded by saying in a statement that it disagrees with PharMerica's regulatory analysis and its stance that the deal is “highly conditional and risky.”
In a Aug. 24 letter to Omnicare CEO John Figueroa, PharMerica said that the companies have discussed Omnicare's interest in acquiring PharMedica several times, but have not used a third party, which would protect customer information and confidentiality, to evaluate regulatory risks.
Gregory Weishar, CEO of PharMerica, wrote that Omnicare's demands for confidential customer information in order to assess regulatory risks are “unacceptable because market risk is much higher for PharMerica than Omnicare.”
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