Another activist investor jumps into Stada fray, lobbying for $4B-plus private equity buyout

Rumors have been flying that Stada’s talked with potential buyer CVC Capital Partners--and the way one activist investor sees it, if the drugmaker hasn’t, it should.

U.S.-based rebel shareholder Guy Wyser-Pratte, who’s picked up a stake in the under-pressure German pharma, is advocating a sale of the company, Reuters reports.

CVC is “interested, my contacts in Germany say that. They can easily pay in the mid-sixties and still make money,” Wyser-Pratte told the news service.

Free Webinar

Striving for Zero in Quality & Manufacturing

Pharmaceutical and medical device manufacturers strive towards a culture of zero – zero hazards, zero defects, and zero waste. This webinar will discuss the role that content management plays in pharmaceutical manufacturing to help companies reach the goal of zero in Quality and Manufacturing.

At that price, a deal could be worth more than €4 billion ($4.5 billion). Stada shares were trading at €48.25 on Tuesday at press time, with a market cap of €3 billion.

Buzz around a potential Stada-CVC tie-up picked up in May, when The Wall Street Journal reported that the pair had been holding informal takeover discussions. Stada, for its part, has denied holding any such talks.

Meanwhile, fellow activist Active Ownership Capital--which has been sparring with Stada for months now--has been taking a different tack. It’s working to overturn the drugmaker’s board, which it hopes to do at Stada’s annual meeting late next month. And as for the drugmaker itself, it’s hoping to placate investors with a competing slate of board nominees of its own.

The way Wyser-Pratte sees it, though, the time to strike is now. “Why wait 5 years instead of selling in 5 months?” he said.

- get more from Reuters

Special Report: Top 20 generics companies by 2014 revenue - Stada Arzneimittel

Related Articles:
Stada activist hits back with its own board picks in fierce duel for company control
Stada faces down its proxy brawler with 4 board nominees of its own
New Stada chief knocks down former CEO’s son, fires advisers
Longtime Stada CEO's exit forced by illness amid activist turmoil
Stada eyes €3.7B buyout to dodge activists' demands: WSJ
Note from Stada to activists: We'll replace board members ourselves
Stada agrees to play nice with activist investor for board overhaul

Suggested Articles

Amgen could soon face new competition in the PCSK9 class, but an efficacy boost in treating high-risk heart attack patients could help keep it ahead.

In its quest to become the dominant SGLT2 diabetes med for heart failure, Jardiance is touting DPP-4 inhibitor-topping data to support its case.

Despite having lost some of its novelty, AZ's Brilinta is touting bleeding data over aspirin that could be a big break in acute coronary syndrome.