Drug maker Pfizer Inc. (PFE) today announced that it has agreed to pay $3.6 billion, or $14.25 a share, in cash to buy King Pharmaceuticals Inc (KG). The proposed acquisition represents a 40% premium to King’s closing share price as of October 11, 2010.
The deal, which is approved by the boards of both co.’s, is Pfizer’s largest since it bought rival Wyeth for $68 billion in 2009.
Pfizer said the purchase will add about $0.02 per share to its net income in 2011 and 2012, and approximately $0.03 – $0.04 annually from 2013 through 2015.
King shares rose 39.41% –the most intraday since November 1999. — early Tuesday to $14.15 while Pfizer was off 2 cents at $17.36.
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