Monday February 23, 08:20 AM
UPDATE 1-Merck KGaA agrees to buy MediCult for $55 mln
LONDON, Feb 23 (Reuters) - Germany's Merck KGaA (MKGAY.PK - news) has agreed to buy Norway's MediCult for 383 million Norwegian crowns ($55.1 million) to boost its fertility treatment business, trumping a rival offer.
Merck said on Monday it had won unanimous backing from MediCult's board for its bid and would launch a recommended cash tender at 13.50 crowns per share.
That represents a 65 percent premium to the price on Jan. 13, the day before Sweden's Vitrolife (Stockholm: VITR.ST - news) announced its bid for MediCult.
Merck said its offer is 27 percent above the implied value of Vitrolife's share-for-share offer, based on Feb. 20 closing prices.
The acquisition will be financed through Merck's existing funds or lines of credits. Details will be sent to MediCult shareholders at the latest during the week of 23 March.
(Reporting by Ben Hirschler; editing by John Stonestreet) ($1=6.945 Norwegian Crown) Keywords: MEDICULT/MERCKKGAA
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