UK inhaler maker plans to back tobacco giant Philip Morris International’s takeover bid, despite health charities urging them to oppose it
Earlier:
- US jobless claims dropped last week
- IEA: Rising demand for oil “abruptly reversed course in July”
- UK economy returned to growth in Q2
- Economy grew 1% in June…but still 2.2% smaller than Feb 2020
A late newsflash: inhaler group Vectura has backed the takeover offer from tobacco firm Philip Morris International, despite health charities, public health experts and doctors urging them to reject it.
Vectura says it has decided that PMI’s offer, of 165p per share, is superior to the 155 pence per Vectura share offered by private equity firm Carlyle.
The Vectura Directors appreciate Carlyle’s interest in Vectura over this lengthy process and their support for Vectura’s strategy to become one of the market leading CDMOs in the inhalation segment.
However, the Vectura Directors recognise the superior cash price the Final PMI Offer provides Vectura shareholders. The Vectura Directors also note that wider stakeholders could benefit from PMI’s significant financial resources and its intentions to increase research and development investment and to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.
Respiratory drug group Vectura has backed a takeover by Philip Morris. Having previously acknowledged warnings that its ownership by a tobacco firm could harm Vectura’s prospects, the board of the drug maker has changed its tune and said it could benefit from Philip Morris! pic.twitter.com/KpH37ARvyT
“Vectura’s future commercial viability as a company dedicated to improving respiratory health would be seriously jeopardised should the PMI takeover proceed.”
“2020 was the worst year on record for the negative impact of tobacco on human health, causing an estimated 8 million deaths and tens of millions of serious medical illnesses. PMI has an estimated 15% share of the global cigarette market, yet it is not held accountable for the profound impact its products have on human life”.
Related: Health charities voice concern at Philip Morris’s £1bn bid for Vectura
In the City, the FTSE 100 index has closed 27 points lower at 7193, down 0.4%.
That’s mainly due to some blue-chip stocks going ex-dividend today, such as Rio Tinto (-5.5%), while investors weren’t too stirred by this morning’s GDP report either.
Ex-dividend factors clip 32.74 points from FTSE 100 today – would be trading higher for the session otherwise
European Closing Bell
FTSE 100 -0.37% at 7,193
STOXX 50 +0.50% at 4,227
DAX +0.74% at 15,944
CAC 40 +0.43% at 6,888
IBEX 35 +0.09% at 8,984
MIB +0.34% at 26,546
SMI +0.39% at 12,436
~ @Newsquawk
