DOW JONES NEWSWIRES
Bristol-Myers Squibb Co. (BMY) said it extended the deadline for
its tender offer to buy shares of partner Medarex Inc. (MEDX) amid
low shareholder support.
As of 9 a.m. EDT Thursday, about 8.7% of Medarex's shares
outstanding had been tendered.
The drug giant extended the deadline two days to midnight EDT
Wednesday.
Bristol-Myers is offering $16 in cash for each share of Medarex,
for a total of roughly $2.4 billion. After adjusting for the
roughly $300 million on Medarex's books, the deal value comes to
$2.1 billion.
The acquisition, announced last month, will give Bristol-Myers
access to a promising cancer treatment. It comes as Bristol-Myers
pursues a strategy of shedding non-pharmaceutical assets, such as
wound-care and medical-imaging units, while using the proceeds and
its cash hoard to build out its pipeline and product portfolio. In
particular, the company hopes to expand its portfolio of
biotechnology therapies and specialty drugs, a goal it says Medarex
can help it achieve.
- By Kathy Shwiff, Dow Jones Newswires; 212-416-2357;
Kathy.Shwiff@dowjones.com