Monday, September 30, 1996
Not all successful companies make it to the public equity markets,
because of timing or other issues that get in the way of an initial public offering. One
such company is Oclassen Pharmaceuticals Inc., which has found its exit strategy through
an acquisition by Watson Pharmaceuticals Inc.
WATS (Corona, Calif.) is acquiring Oclassen in a stock-for-stock merger
that will be accounted for as a pooling of interests. Oclassen shareholders will receive
WATS common shares of valued at $135 million as long as WATS trades between $27 and $35.
If the stock trades above $35, Oclassen shareholders will receive 3.9 million WATS shares;
and if the stock trades below $27, Oclassen shareholders will receive 5 million WATS