Wyeth Shareholders Approve Pfizer Takeover
July 20 2009 - 11:28AM
Dow Jones News
Wyeth (WYE) shareholders voted overwhelmingly to sell the drug
maker to Pfizer Inc. (PFE) Monday, hitting a key milestone on the
way to the mega-merger's expected closing later this year.
Some 98% of Wyeth shares voted were cast in favor of the deal,
according to a preliminary tally announced a shareholders' meeting
in Morristown, N.J., which was available by Webcast.
The deal is still subject to clearance by antitrust regulators
in the U.S. On Friday, Pfizer announced the European Commission had
approved the deal, subject to Pfizer's pledge to shed certain
animal-health assets in Europe. U.S. regulators also expect
animal-health divestitures because Pfizer and Wyeth have
overlapping animal-health businesses.
New York-based Pfizer expects the deal to close by the end of
the year.
In January, Pfizer agreed to acquire Wyeth, based in Madison,
N.J., in a cash-and-stock deal then valued at about $68 billion.
Pfizer is striking the deal to help diversify its business and gain
access to fast-growing biotechnology-style drugs and vaccines, all
to help soften the blow of the impending loss of patent protection
for Pfizer's blockbuster cholesterol drug Lipitor in 2011. Also,
Pfizer expects significant cost-savings from the deal, with a
planned 15% reduction in the combined entity's work force
planned.
Wyeth shareholders were sold on the takeover thanks to a nearly
30% premium to Wyeth's share price before news of the merger talks
leaked in late January.
Wyeth Chief Executive Bernard Poussot said Monday the combined
entity will achieve more than either company could have alone. But
he acknowledged "mixed feelings" and "sadness to see the company
disappear as we know it today," as well as pending loss of jobs for
many Wyeth employees.
Wyeth shares rose 3 cents to $46 Monday. Pfizer was off 2 cents
at $14.94. The deal originally valued Wyeth at $50.19 a share.
-Peter Loftus; Dow Jones Newswires; 215-656-8289;
peter.loftus@dowjones.com