Charles River Withdraws Offer for Chinese Company
August 2, 2010
According to the Boston Herald, Charles River Laboratories has withdrew a $1.6 billion bid for WuXi PharmaTech, citing investor opposition to what would have been the largest foreign takeover of a Chinese company. Charles River will pay WuXi a $30 million break-up fee after mutually agreeing to end the $21.25-a-share cash-and-stock offer made in April. Jana Partners LLC, Charles River’s largest stakeholder, had urged investors to vote against the deal, citing “highly speculative” benefits and an “unreasonable price” in a statement issued hours before the announcement. The takeover would have given Charles River facilities in Shanghai, Suzhou and Tianjin in China, where cheaper labor and laboratory costs are luring the world’s biggest drug makers, including Novartis.