PharMerica Corp.'s board rejected Omnicare's unsolicited tender offer to acquire the institutional pharmacy services company and is urging stockholders to reject the offer.
PharMerica board rejects Omnicare tender offer
Omnicare, which is based in Covington, Ky., had announced a $716 million, all-cash offer for PharMerica in August.
“The board determined that the offer undervalues PharMerica and is not in the best interests of PharMerica's stockholders,” PharMerica said in a Sept. 20 news release. “In addition to undervaluing PharMerica and its future prospects, the board believes the offer is illusory because it is subject to significant regulatory and other uncertainty.”
The deal would combine the No. 1 and No. 2 players in institutional pharmacy. PharMerica has said the deal would face regulatory scrutiny.
“Given PharMerica’s previous rejections, we are not surprised by their continued refusal to engage with Omnicare,” an Omnicare spokesperson said. “We are committed to pursuing this offer, which we believe presents a compelling opportunity for PharMerica stockholders to realize value for their shares not likely to be available in the marketplace or in other business combination opportunities.”
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