Holders to Vote on Amgen-Immunex Deal
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Shareholders of both companies will vote Thursday on Amgen Inc.’s $13.5-billion acquisition of rival Immunex Corp. The deal, which would still require government approval, would create a powerhouse in inflammatory disease, anchored by Immunex’s rheumatoid arthritis drug Enbrel.
Recent production problems have resulted in a shortage of Enbrel, causing Immunex to shave 2002 sales projections 10% to $900 million. A sharp decline in Amgen’s price has lowered the value of the deal from $16 billion, when it was announced last December.
Under terms of the deal, Immunex shareholders will receive $4.50 cash and .44 share of Amgen stock for each Immunex share. Amgen closed at $45.66 in Nasdaq trading Friday, down 23% from its closing price of $59.49 on Dec. 18.
Immunex now stands to receive stock and cash valued at $24.60 a share. Immunex closed at $24.07 Friday on Nasdaq.
The deal requires regulatory approval. The exact value of the deal won’t be set until it closes.
Wyeth Laboratories, formerly American Home Products, owns 41% of Immunex and has agreed to vote its shares for the deal.
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