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Pliva says Actavis's takeover bid not friendly

ZAGREB, March 27 (Hina) - Croatian pharmaceutical company Pliva said onMonday that a takeover bid by Icelandic company Actavis was notfriendly, adding that "in friendly mergers most of the work is donebefore they are announced in public."
ZAGREB, March 27 (Hina) - Croatian pharmaceutical company Pliva said on Monday that a takeover bid by Icelandic company Actavis was not friendly, adding that "in friendly mergers most of the work is done before they are announced in public."

Pliva said in a statement that Actavis's offer of 570 kuna per share was "unattractive for the shareholders and the employees alike." "The purpose of consolidation is for a company to come out stronger, and at the moment we do not see that Pliva would be made stronger by it," it said.

The company said that some of its production would be transferred from Dresden, Germany, and the United States to Zagreb and that a greater volume of production was expected in Zagreb in the second half of the year, which would lead to an increase in the number of employees in production.

Pliva's managers insist that "Actavis is a highly indebted company because of a large number of acquisitions over the last couple of years, so it is to be expected that Pliva would have carried the burden of Actavis's debt as a result of the merger."

Actavis's plans to transfer production to Croatia were described as unrealistic in view of complex procedures that would have involved regulatory bodies of Croatia and other countries.

Although in majority foreign ownership, Pliva is a Croatian company, with its headquarters in Zagreb and with a management that is autonomous in decision making, the company said.

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