Elan has agreed to a €6.5 billion (US$8.6 billion) takeover bid by American drug company Perrigo. It ends months of takeover speculation for Elan which was the subject of a hostile bid earlier this year.
Shareholders in Elan will get a total of €12.41 (US$16.50) for each share they hold in Elan, in a mixture of cash and Perrigo shares.
That is a 10% increase on the price of Elan shares last Friday.
"This is an excellent transaction for Elan shareholders and provides them with cash consideration as well as the opportunity to benefit from the potential upside value of the new company" Elan chairman Robert Ingram said in a statement today.
G. Kelly Martin, Executive Director & CEO of Elan
Perrigo is one of the oldest drug companies in America, tracing its roots back to the 1880s.
It is now involved in selling generic drugs and said it will base its business in Ireland.
It said that will allow it to take advantage of Ireland's low corporation tax rate. The company said it will generate cost savings of about US$150 million from the sale.
Elan is headquartered in Dublin but also has a presence in Cambridge, Massachusetts and Zug in Switzerland. It is listed on the Irish and New York stock exchanges.
