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American Home Heats Up Takeover Bid

August 16, 1994|From Reuters

MADISON, N.J. — Turning up the heat in its takeover bid, American Home Products Corp. said Monday that it will offer up to $100 a share for American Cyanamid Co. if the latter will agree to a friendly transaction.

American Home said its $100-a-share offer stands until Aug. 16. But it said it will proceed with its previous $8.5-billion, $95-a-share tender offer if an agreement between the two companies cannot be reached.

American Cyanamid's spokeswoman was not immediately available for comment. Madison, N.J.-based American Home Products, which makes Advil, Anacin and Dristan brand pain relievers, unveiled the offer for Cyanamid earlier this month.

Last week, American Home filed a lawsuit against American Cyanamid, which produces drugs, medical products, pesticides and animal health items, accusing management of depriving shareholders by ignoring its bid.

American Home is also seeking to strike anti-takeover defenses from Wayne, N.J.-based American Cyanamid's charter.

John Stafford, American Home's chairman and chief executive, met with American Cyanamid Chairman Albert Costello on Sunday, according to a letter released by American Home. American Home set the Aug. 16 deadline for American Cyanamid to accept the $100-a-share offer and an Aug. 19 deadline for a definitive merger agreement.

In a letter to Costello, Stafford said, "While we have always believed that our $95-per-share offer represented a full and fair price . . . we were willing to propose an increase of that price to $100 on the basis of our belief that such an increase would permit us to reach agreement and proceed rapidly to conclude a transaction supported by both companies."

"If our proposal is not accepted by your board of directors, we will proceed with our pending tender offer at $95 per share," he wrote.

American Home Products closed at $59, up 75 cents on the New York Stock Exchange. American Cyanamid fell $2 to $90.875.

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