Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 

4-Traders Homepage  >  Equities  >  Xetra  >  Bayer AG    BAYN   DE000BAY0017

BAYER AG (BAYN)

Delayed Quote. Delayed  - 08/25 05:35:23 pm
96.04 EUR   -0.70%
08/23DJU.S. Lawmakers Plan Hearing Over Wave of Agriculture Mergers
08/22 BAYER : Not intended for U.S. and UK Media -- New Real-World Evidenc..
08/17 BAYER : and the Canadian Vascular Network (CVN) Announce the 2016 Re..
SummaryQuotesChartsNewsAnalysisCalendarCompanyFinancialsConsensusRevisions 
News SummaryMost relevantAll newsSector news 

Reckitt trumps Bayer with $1.4 billion bid for Schiff

share with twitter share with LinkedIn share with facebook
share via e-mail
0
11/16/2012 | 03:07pm CEST

Reckitt Benckiser Group Plc (>> Reckitt Benckiser Group Plc) has trumped Bayer AG's (>> Bayer AG) agreed deal to buy Schiff Nutrition International Inc (>> Schiff Nutrition International Inc) with a higher offer of $1.4 billion for the U.S. vitamin maker.

Reckitt Benckiser Group Plc (>> Reckitt Benckiser Group Plc) has trumped Bayer AG's (>> Bayer AG) agreed deal to buy Schiff Nutrition International Inc (>> Schiff Nutrition International Inc) with a higher offer of $1.4 billion for the U.S. vitamin maker.

The bid, which tops Bayer's $1.2 billion price, opens up a potential bidding war for Schiff, whose portfolio of vitamins and nutritional supplements, such as MegaRed for heart care and Move Free for joints, is attractive to companies seeking stable sources of growth.

Reckitt, the British consumer products group behind Cillit Bang cleaner and Durex condoms, said late on Thursday it would offer $42 in cash for each Schiff share, a 23.5 percent premium over the $34 per share that Bayer, Germany's biggest drugmaker, agreed to pay on October 30.

Shares of Schiff Nutrition surged nearly 30 percent to $44 in after-hours trading on the New York Stock Exchange, above Reckitt's offer and indicating some investors expect the bidding to go higher still.

Reckitt commenced a tender offer on Friday and said it would expire at 9:00 a.m. New York time on December 14, unless extended.

The new offer values Schiff at about 3.6 times its forecast 2013 annual sales, which is around the top end of deal multiples in the non-prescription drugs industry.

But it would get Reckitt into the $30 billion global market for vitamins and supplements for the first time, complementing its existing strength in other areas of consumer health.

"When this offer was made by Bayer - which was a bilateral agreement and not a public auction process - we knew that this was an area we would be very interested in," Reckitt Chief Executive Officer Rakesh Kapoor told Reuters.

"That's why we started to work and look at it once again to see whether this would be attractive to our shareholders. Based on our due diligence, we believe it is and that's why we've come up with a strong offer."

Analyst Andrew Wood at brokerage Bernstein said the deal made good strategic sense for Reckitt.

"This is particularly true given (Reckitt's) ... excellent M&A track record and its ability to quickly extract big synergies from acquired companies," he said.

Its past deals in the health sector include buying Boots' over-the-counter business in 2006 for 1.9 billion pounds ($3.0 billion), cough medicines company Adams in 2008 for $2.3 billion and Durex condoms group SSL for 2.5 billion pounds in 2010.

$22 MLN BREAKUP FEE

Reckitt said it expected the deal to boost earnings immediately on an adjusted basis and Bernstein's Wood predicted an uplift of about 1 to 2 percent in 2013 earnings per share.

A Bayer spokesman declined to comment and representatives for Schiff could not be immediately reached for comment.

While Bayer may bide its time before reacting to Reckitt's move, its management will be under pressure to salvage a deal that was well received by investors.

"A bidding war cannot be ruled out. Bayer probably has to match the Reckitt offer. This would result in an acquisition price which might get unattractive for Bayer," DZ Bank analyst Peter Spengler said in a research note.

Bayer shares were 1.3 percent higher by 1400 GMT, while Reckitt dipped 0.7 percent.

Under the terms of its deal with Bayer, Schiff is allowed to entertain superior offers made in writing before November 28. If it decides to go with another offer, it would have to pay a relatively modest $22 million breakup fee to Bayer.

With Schiff now in play, analysts said the situation could also attract interest from other parties - in particular Johnson & Johnson (>> Johnson & Johnson), the only other leading consumer health player lacking a presence in vitamins and supplements.

Schiff Chairman Eric Weider and private equity firm TPG Capital controlled 85 percent of the company's voting power, as of the end of October.

For Bayer, the planned acquisition of Schiff represents part of a strategy to expand into steadier, albeit less profitable, areas as a counterweight to prescription medicines, where there are high risks of clinical trial failures and patent expiries.

Reckitt, meanwhile, is keen to build up its healthcare business, which already includes painkillers, anti-acne creams and condoms. It also makes a range of household and personal care products.

Morgan Stanley is acting as financial adviser to Reckitt, while Houlihan Lokey is advising Schiff alongside Rothschild. Bayer is being advised by Bank of America Merrill Lynch. ($1 = 0.6300 British pounds)

(Additional reporting by Soyoung Kim, Ludwig Burger, Anjuli Davies and Zeba Siddiqui; editing by Sriraj Kalluvila and David Holmes)

By Michael Erman and Ben Hirschler

share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on BAYER AG
08/23DJU.S. Lawmakers Plan Hearing Over Wave of Agriculture Mergers
08/22 COVESTRO : Assigned Patent
08/22 BAYER : Not intended for U.S. and UK Media -- New Real-World Evidence on Venous ..
08/18 BAYER CROPSCIENCE : Research Conducted at Bayer CropScience Has Provided New Inf..
08/17 BAYER : and the Canadian Vascular Network (CVN) Announce the 2016 Research Fello..
08/15 Covestro LLC Receives US2020's 2016 STEM Mentoring Award for 'Excellence in C..
08/12 COVESTRO : Longer lives, greater financial needs lead to delayed retirements
08/11DJEU Opens Antitrust Probe on Dow Chemical-DuPont Merger
08/11 Covestro LLC Receives US2020's 2016 STEM Mentoring Award for 'Excellence in C..
08/05 BAYER : reported to be reviewing Monsanto's books as it mulls higher bid
More news
Sector news : Pharmaceuticals - NEC
08/25 FTSE retreats as pharma stocks fall
08/25DJStocks Fall as Investors Look to Fed's Jackson Hole Meeting
08/25DJStocks Fall as Investors Look to Fed's Jackson Hole Meeting
08/25DJStocks Fall as Investors Look to Fed's Jackson Hole Meeting -- 3rd Update
08/25DJMylan Boosts Price Assistance for EpiPen Amid Backlash
More sector news : Pharmaceuticals - NEC
News from SeekingAlpha
08/23 Who's Next After Medivation?
08/23 Apple Wants You To Feel Better
08/23 BLOOMBERG : Bayer, Monsanto moving closer to deal
08/22 Berkshire Boosts Apple Stake And Other Moves From Top Managers
08/19 Bayer/CRISPR Therapeutics joint venture Casebia Therapeutics establishes oper..
Advertisement
Financials (€)
Sales 2016 46 964 M
EBIT 2016 8 224 M
Net income 2016 4 747 M
Debt 2016 15 954 M
Yield 2016 2,77%
P/E ratio 2016 17,62
P/E ratio 2017 14,95
EV / Sales 2016 2,04x
EV / Sales 2017 1,89x
Capitalization 79 982 M
More Financials
Chart BAYER AG
Duration : Period :
Bayer AG Technical Analysis Chart | BAYN | DE000BAY0017 | 4-Traders
Full-screen chart
Technical analysis trends BAYER AG
Short TermMid-TermLong Term
TrendsBullishNeutralBearish
Technical analysis
Income Statement Evolution
More Financials
Consensus
Sell
Buy
Mean consensus OUTPERFORM
Number of Analysts 24
Average target price 109 €
Spread / Average Target 12%
Consensus details
EPS Revisions
More Estimates Revisions
Managers
NameTitle
Werner Baumann Chairman-Management Board
Werner Wenning Chairman-Supervisory Board
Johannes M. Dietsch Chief Financial Officer
Katharina Jansen Head-Science & Research
Hartmut Klusik Human Resources, Technology & Sustainability
More about the company
Sector and Competitors
1st jan.Capitalization (M$)
BAYER AG-16.48%90 173
JOHNSON & JOHNSON15.57%324 776
ROCHE HOLDING LTD.-11.47%217 694
NOVARTIS AG-9.45%213 882
PFIZER INC.7.87%211 206
MERCK & CO., INC.18.76%173 462
More Results