Pfizer sets share price for animal health spinoff
Closing in on its IPO for its animal health unit Zoetis, Pfizer ($PFE) on Thursday reported that it would price shares between $22 and $25 each, potentially raising $2.2 billion when it happens at the end of the month, Bloomberg reports. The company intends to offer 86.1 million shares, a 20% stake, to investors.
Earlier in the day, the deal set off a scramble in the bond market with $30 billion in orders pouring in for a $3.65 billion four-part deal. For tax reasons, the sale starts with an equity-for-debt swap. After the IPO, Pfizer may distribute its remaining equity stake in Zoetis to shareholders, tax-free. Pfizer claims that the unit is the largest animal health and vaccines business in the world with sales in 2012 of $4.2 billion.
With the nutritionals and animal health deals close at hand, a report this week that Pfizer is doing some internal shuffling set off renewed speculation that it was priming for a breakup. Pfizer said it is separating operations of its on-patent prescription drug operations from the "established products" business, which encompasses off-patent Pfizer drugs and other generic products. The move is akin to what Abbott Laboratories ($ABT) did before it spun off its drug development business into AbbVie ($ABBV) this month.
- here's the Bloomberg report
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