Pfizer to merge with Warner-Lambert

PFE and WLA agreed to merge in a deal that values WLA at $90 billion based on PFE's Friday close of $35.75. The merged company will have annual revenues of $28 billion, including $21 billion in prescription drug sales, and will have a market cap of $230 billion.

PFE will exchange 2.75 shares of its stock for each outstanding WLA share. The merged company, to be named Pfizer Inc., will have a $4.7 billion R&D budget in 2000. PFE shareholders will own 61 percent of the combined company. PFE Chairman and CEO William Steere will retain his titles, and WLA Chairman, President and CEO Lodewijk de Vink will leave the company following completion of the merger. ...