BOSTON (Dow Jones) -- King Pharmaceuticals said early Friday that fellow specialty drugmaker Alpharma Inc. has rejected its takeover bid of $1.4 billion in cash.
King (KG) said in a statement Friday that is has formally offered $33 a share in cash for Alpharma (ALO), an offer that represents a 37% premium over Alpharma's closing stock price on August 21. King added the offer was not contingent on financing.
The bid also represents a 49% premium over an initial written offer submitted to Alpharma on Aug. 4, King said.
But King also revealed that Alpharma's board has rejected the offer. King added that it was making its bid public in an effort to make shareholders aware of what it called a "compelling" offer.
"We believe our all-cash proposal is too compelling to ignore. In light of the fact that the Alpharma Board declined this proposal, we think it is important for the stockholders of both companies to be aware of this exciting opportunity. It remains our strong preference to work cooperatively with Alpharma regarding this proposal," said Brian Markison, King's chief executive officer, in a statement.
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