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Last Update: 30-Jan-12 11:43 ET
PharMerica Down 13% After The FTC Blocked Omnicare's (OCR) Hostile Tender Offer
Late Friday, news headlines showed that the FTC sued to block Omnicare’s (OCR) bid to buy Pharmerica (PMC $12.45 -1.85). Overnight, Omnicare commented on FTC position blocking co to purchase PharMerica. Co issued the following statement responding to the FTC split (3 to 1) decision to issue an administrative complaint to block co's offer to purchase all outstanding shares of PharMerica common stock for $15.00 per share in cash.
"We strongly disagree with the FTC's decision to seek to block the proposed transaction. We also disagree with the FTC's claim for the need to protect insurance companies as a result of this combination. The FTC has already examined the institutional pharmacy industry, noting the numerous players and explaining how the ease of entry and other market conditions facilitate competition. The institutional pharmacy business is competitive and Omnicare is confident it would remain so after the transaction."
"We strongly disagree with the FTC's decision to seek to block the proposed transaction. We also disagree with the FTC's claim for the need to protect insurance companies as a result of this combination. The FTC has already examined the institutional pharmacy industry, noting the numerous players and explaining how the ease of entry and other market conditions facilitate competition. The institutional pharmacy business is competitive and Omnicare is confident it would remain so after the transaction."
