By publishing its opinion, Pliva's Supervisory Board met its obligation from the Act on the Takeover of Joint Stock Companies. Under the law, Pliva's Supervisory Board must give its opinion about the takeover bid within seven days following Barr's announcement of the takeover bid.
Pliva's Supervisory Board said that after a careful analysis and consultations with an independent financial advisor, it decided that the offer by Barr Pharmaceuticasl was good and fair.
Under terms of Barr's tender offer Pliva shareholders who tender their shares will receive 743 kuna per share in cash. In addition, shareholders that are registered as shareholders at the Central Depository Agency as of 22 August 2006 will receive the dividend of 12 kuna per share, for a total cash consideration of 755 kuna per share.
Last Friday Barr Pharmaceuticals announced that it has formally published its tender offer for the purchase of 100% of Pliva shares in the Official Gazette in accordance with direction from the Croatian Financial Services Supervisory Agency (HANFA).
The formal publication of the company's bid initiates the tender process, which is expected to take a minimum of 30 days following publication, Barr officials reported.
In case it takes over the Pliva company, Barr plans to create more jobs in the manufacturing plants and increase Pliva's production capacities, and the merger of the two companies will not lead to lay-offs or to the shutting down of plants, the President and Chief Operating Officer of the Barr Pharmaceuticals, Paul M. Bisaro, said.