Business & Finance

Mayne Announces Intent to Takeover F.H. Faulding & Co

Business Wire - May 31st, 2001

Health and logistics giant Mayne Nickless Ltd (Mayne - ) has today announced a surprise takeover bid for F H Faulding & Co Limited (Faulding - FHF.AX).

Faulding shareholders have been advised to take no action in relation to Mayne's bid or any document received from Mayne until they receive the Directors' formal recommendation.

The Directors will keep shareholders fully informed of further developments (including other strategic alternatives) as they occur and will provide a formal recommendation on the bid in ample time for shareholders to make an informed decision.

UBS Warburg and Freehills have been appointed to advise Faulding in relation to the offer.

Faulding is a worldwide health and personal care company, listed on the Australian Stock Exchange. Faulding's principal businesses are oral and injectable pharmaceuticals, consumer health products, the provision of distribution and retail management services to pharmacies and logistics management services to hospitals. Faulding products are sold in over 70 countries.

Shares in Faulding made a dramatic leap on receipt of the announcement, closing a massive 20% higher for the day, and notably higher than the offer price presented by Mayne. This suggests that shareholders consider the Mayne bid to be low-ball.