VLI, the Irvine manufacturer of the Today...

VLI, the Irvine manufacturer of the Today contraceptive sponge, accepted American Home Products’ offer to buy the company for $74 million, or $6.25 per share. That was $12 million less than the price American Home Products had been willing to pay before VLI inadvertently let a patent on the sponge lapse in July. VLI was reluctant to accept the reduced price, but it failed to have the patent reinstated and agreed to American Home Products’ offer on Dec. 9, the day the offer would have expired. Milan Kofol, deputy treasurer of American Home Products in New York, said that on Dec. 11 it paid $70.9 million for 94.9% of VLI’s shares and expects to buy the remainder of the shares within the next three months. The contraceptive sponge is VLI’s primary product. The firm also distributes condoms and pregnancy and ovulation test kits under the Today brand name.