Warner in line for $3B P&G buyout

Procter & Gamble is in late-stage talks to sell its prescription drugs business, a deal that could be worth some $3 billion. The Wall Street Journal reports that drugmaker Warner Chilcott and private-equity firm Cerberus Capital Management are both working on a buyout.

Sources told the newspaper that Warner Chilcott would be willing to pay more for the unit, because it would be a strategic deal, giving it access to drugs that complement its women's health business. So Cerberus is effectively second in line, though it has lined up preliminary financing from some Wall Street Banks. The private-equity firm would turn the P&G unit into a standalone company.

As you know, P&G put the division up for sale toward the end of 2008, saying that it planned to stop investing in prescription drugs and focus instead on its over-the-counter brands. A deal could be finalized by the end of the summer, the Journal reports. Among the drugs that P&G makes are the bone med Actonel and the bladder drug Enablex. 

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