By Joe Hoppe
Vectura Group PLC said Thursday that its management intends to unanimously recommend to shareholders the 165 pence ($2.29) a share bid for the company from Philip Morris International.
The U.K. pharmaceuticals business said that the offer–a 10 pence premium to the final offer from competing bidder Carlyle Europe Partners V–is fair and reasonable, providing an aggregate value of around GBP1.1 billion for its entire issued share capital.
Vectura said that while it appreciated Carlyle’s interest over the process and the company’s support, it recognized the superior cash offer from Philip Morris /zigman2/quotes/201611010/composite PM -1.50% .
It also noted that wider stakeholders could benefit from Philip Morris’ significant financial resources, its intentions to increase research and development investment, and its intention to operate Vectura as an autonomous business unit.
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