12 Aug Vectura board backs takeover bid from tobacco giant Philip Morris | Business News
The board of British pharmaceutical firm Vectura has backed a takeover offer from tobacco giant Philip Morris International.
PMI had offered 165p per share – or around £1.1bn – for the Wiltshire-based firm, which makes inhaled medicines and devices to treat respiratory illnesses such as asthma.
Its rival, US private equity firm Carlyle, had offered 155p per share and said earlier this week that it would not increase its bid, which it described as “full and fair”.
Vectura’s board had come under pressure from politicians such as shadow health secretary Jonathan Ashworth, as well as various health organisations, all concerned about such a tie-up.
But on Thursday evening, the board said it considered the terms of the PMI offer to be fair and reasonable, adding that it plans to unanimously recommend the bid to shareholders.