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Pfizer Snaps Up Wyeth for $68B

Merger would be largest pharma deal since GlaxoWellcome-SmithKline 2000 merger

By Jim O'Neill,  Newser User

Posted Jan 26, 2009 6:11 AM CST
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(Newser) – The world’s largest drugmaker, Pfizer, is poised to become even more gargantuan after it agreed early this morning to buy rival Wyeth for $68 billion, reports the Wall Street Journal. In the first major merger to hit Wall Street in months, Pfizer will borrow $22.5 billion from four banks that received bailout money—Goldman Sachs, JPMorgan, Citigroup, and Bank of America, reports the New York Times.

The deal would be the largest pharmaceutical merger since the $76 billion consolidation of GlaxoWellcome and SmithKline in 2000. Wyeth shareholders will get $50.19 per share: $33 in cash and just less than one share of Pfizer stock. After the deal, it’s anticipated Wyeth’s management team will be replaced, including CEO Bernard Poussot.

A sign at Pfizer headquarters is shown Sunday, Jan. 25, 2009 in New York. It was announced Monday Jan. 26, 2009 that Pfizer Inc. reached an agreement to acquire Wyeth in deal valued at $68 billion.
A sign at Pfizer headquarters is shown Sunday, Jan. 25, 2009 in New York. It was announced Monday Jan. 26, 2009 that Pfizer Inc. reached an agreement to acquire Wyeth in deal valued at $68 billion.   (AP Photo/Mark Lennihan)
Jeff Kindler, Chairman and CEO of Pfizer.
Jeff Kindler, Chairman and CEO of Pfizer.   (AP Photo/Mark Lennihan)
The world headquarters of Pfizer Inc. is seen in New York. The company announced plans to buy rival Wyeth for $68 billion.
The world headquarters of Pfizer Inc. is seen in New York. The company announced plans to buy rival Wyeth for $68 billion.   (AP Photo/Mark Lennihan, file)
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COMMENTS
Showing 1 of 1 comment
Guest
Jan 27, 2009 4:48 AM CST
PFIZER COVER UP OVER MEDICATION CELEBREX IN CANADA This is a very real situation and the media so far is being very sheepish! My FACTS are rock solid!!!!!! I will not be bought off! I will not let their lawyers make the suggestion AGAIN! They already have!!!!! the following is a link to a YOUTUBE video. Please watch and resend the Video! THANK YOU! http://ca.youtube.com/watch?v=6xmoOmDpZoQ ... MAINSTREAM MEDIA ARE ACTING VERY SHEEPISH The Americans that have been hurt by this medication are being taken advantage of. Pfizer should not be getting away with this in our PROGRESSIVE COUNTRIES . This concerns AMERICANS as much as it does CANADIANS. I STAND STRONG!!DAY 32 and counting HUNGER STRIKE The condition in question is known has a Patent Foreman Ovale and it is a hole in the upper chambers of the heart, its this hole that allowed the blood clots that the pill makes to pass into my artery system and cause the occlusion in my leg. That is why when they knew who I was (LEAD PLAINTIFF) during the first 2 times the test was done they created allot of confusion and even tried to lie about doing it the first time. It is why when I went to the Washington state Hospital and they had no Idea of my involvement with the lawsuit they report on the condition correctly.

 
Citigroup • Bank of America • Goldman Sachs • pharmaceutical companies • mergers and acquisitions • merger • Pfizer • credit • Wyeth • pharmaceutical industry • JPMorgan Chase • financial crisis

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