BioCentury
ARTICLE | Company News

Competitive bids drove Merck to double Idenix offer

June 21, 2014 12:39 AM UTC

The Merck & Co. Inc. (NYSE:MRK) offer for HCV company Idenix Pharmaceuticals Inc. (NASDAQ:IDIX) more than doubled as a result of competitive bids from two other undisclosed bidders, Merck SEC filings revealed. On May 9, Merck first offered to acquire Idenix at $9.78 per share, or about $1.5 billion. On June 3, Merck revised its offer to $18 per share, or about $2.7 billion, after conducting due diligence. After Idenix informed Merck on June 6 that another bidder had proposed a higher share price, Merck increased its bid to $24.50 per share, which Idenix accepted. The $24.50 price values Idenix at $3.7 billion based on 150.9 million shares outstanding as of June 8. Merck began its tender offer to acquire Idenix on June 20.

The $24.50 price is a 239% premium to Idenix's close of $7.23 on June 6, the last trading day before the deal was announced. The deal is slated to close next quarter (see BioCentury, June 16). ...