ALLERGAN, UPJOHN END MERGER TALKS.Byline: Kenneth N. Gilpin The New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of Times Allergan Inc., a manufacturer of eye- and skin-care products, said Monday that discussions with Pharmacia & Upjohn Inc. about a possible merger had been terminated because the proposed terms were ``not feasible.'' Allergan made the announcement after The Wall Street Journal reported Monday that Pharmacia & Upjohn was talking with Allergan about a possible takeover. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Allergan, the discussions involved a possible stock-swap merger with ``pooling of interest'' accounting. Such a method usually allows a combined company to pool the assets and liabilities of both partners to raise profits more than a transaction in which one company buys another with cash. ``The pooling was feasible for Allergan, but not for Pharmacia & Upjohn,'' said Jeff D'Eliscu, an Allergan spokesman. D'Eliscu declined to elaborate. Following the release of Allergan's statement, Pharmacia & Upjohn issued a statement saying that it was aware of what Allergan had said and had no further comment. Analysts said the move would have been a sound strategy for Pharmacia & Upjohn, the pharmaceutical giant created in November when Upjohn, which is based in Kalamazoo, Mich., agreed to a $6.9 billion ``merger of equals'' with Pharmacia of Sweden. ``It would have given Pharmacia a much stronger presence in the ophthalmic ophthalmic /oph·thal·mic/ (of-thal´mik) ocular (1). oph·thal·mic adj. Of or relating to the eye; ocular. Ophthalmic Pertaining to the eye. market than they currently have,'' said Hemant Shah, who heads his own health-care and pharmaceutical research firm, HKS HKS Harvard Kennedy School (John F. Kennedy School of Government at Harvard University; Cambridge, MA) HKS Hrvatski Košarkaški Savez (Croatian Basketball Federation) HKS Silver Hake HKS Hong Kong Standard & Co., in Warren, N.J. In a comment for clients, Robert Uhl, an analyst at Salomon Brothers
Salomon Brothers was a Wall Street investment bank. , said, ``In our view, Allergan's existing businesses in ophthalmic products would provide a strong vehicle for Pharmacia & Upjohn to launch its soon-to-be-introduced therapy for glaucoma glaucoma (glôkō`mə), ocular disorder characterized by pressure within the eyeball caused by an excessive amount of aqueous humor (the fluid substance filling the eyeball). , Latanoprost.'' Allergan, based in Irvine, Calif., became an independent company in 1989, when it was spun off from SmithKline Inc. as part of its merger with Beecham Group PLC. Allergan, which had revenues of almost $1.1 billion last year, has been considered a potential takeover target Takeover target A company that is the object of a takeover attempt, friendly or hostile. takeover target See target company. for some time. ``There have been rumors about this company for the last four or five years,'' Shah said. ``It is a small to midsize drug company, and in a consolidating industry there are not many of those around.'' In its statement, Allergan said that in the wake of the failed discussions ``we are proceeding with our own business plans in order to serve the best interest of our shareholders.'' On the New York Stock Exchange New York Stock Exchange (NYSE) World's largest marketplace for securities. The exchange began as an informal meeting of 24 men in 1792 on what is now Wall Street in New York City. on Monday, Allergan's shares rose 37.5 cents, to $38.25. Pharmacia & Upjohn's stock rose 62.5 cents to $39.625. |
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