Home News Financial investor EQT picks in the race for Ratiopharm again – Circles

Financial investor EQT picks in the race for Ratiopharm again – Circles

Madeleine Henning Nissen and Eyk

FRANKFURT (Dow Jones) – Swedish financial investor EQT will Circles that together with the Icelandic generics producer Actavis for Ratiopharm offer and thus increase his chances. "EQT is definitely in the running for Ratiopharm still in the process and may be linked this step to improve its position significantly, "said one with person familiar the matter on Wednesday to Dow Jones Newswires.

Actavis, too, am interested in a joint bid with EQT signals confirmed a more informed person. For a joint bid for Germany’s second largest EQT generic manufacturers would be the inability of having a strategic interest, . compensate

Recent media reports that were still the U.S. group Pfizer and Israel’s Teva as favorites for the award of Ratiopharm. The interest in Ratiopharm is because of the growth opportunities Generics business is very high. The financially ailing Merckle group, Ratiopharm about their investment vehicles, asset VEM holds, the pharmaceutical manufacturer wants to sell to finance debt . serve Experts appraise the value of Ratiopharm currently at 2.8 billion to 3 billion EUR.

The Swedes were positioned financially strong enough to make the purchase Ratiopharm pay by cash, said one of the two informed People. "On the part of banks has EQT backing." However, EQT, of course, try a lower price . negotiate In order to suppress the price, the bidders could be in the now taking place due-diligence "Find a horse and arguments, such as relatively high production costs in Germany to Field result, "said the second person. The first Sales have also left open several questions, such as information on Factory in Ulm.

Whether the entrepreneur Ludwig Merckle it enters an appearance, is However, rather doubtful. Merckle Ratiopharm sold under pressure from the Creditor banks and tries to debt as quickly as possible . Decrease "The award is given to the debts of the Merckle Group at the negotiations of the most important factor, " said the first insider. "If the price is right, may have at the next meeting on 5 February, the decision to be who receives the award, "said the person.

EQT in a successful bid would be likely to Ratiopharm to get a majority, "said the second-informed person. A decision is at the bidders competing for Ratiopharm but not yet fallen. The same applies also for the ultimate prize. "The last mentioned in the press seem to me at least EUR 2.8 billion too high, "said the informant on. Once the highest bid the first round "of 2.5 billion EUR and the location Ratiopharm-owners for the second round of this award lies Offers requested ‘that it would end on a price in between run out, said further the informed person.

EQT, Ratiopharm and Actavis did not request Deliver an opinion. The UEM Group, through which the Merckle family their Equity holding, was on Wednesday for an opinion is not to . reach

Website: www.ratiopharm.de
-From Madeleine Nissen and Eyk Henning, Dow Jones Newswires;
+49 (0) 69 - 29725 115, madeleine.nissen @ dowjones.com
DJG / maw / eyh / kgb / jhe
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(END) Dow Jones Newswires

January 20, 2010 11:44 ET (16:44 GMT)

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