P. M. BRIEFING : Marion Labs OKs Dow Merger

Marion Laboratories Inc. shareholders gave final approval today to a merger with a Dow Chemical Co. subsidiary that will create the third-largest pharmaceutical concern in the nation.

Ewing Kauffman, who founded Marion Labs in the basement of his home and is co-owner of the Kansas City Royals baseball team, told shareholders at the company’s annual meeting that he will stay on as chairman emeritus of the merged company.

Shareholders approved the issuance of 127 million new Marion shares to Dow, which will merge Cincinnati-based Merrell Dow Pharmaceuticals Inc. with Marion. Dow Chemical will retain a 67% stake in Marion.

The new company, Marion Merrell Dow, will be based in Kansas City. Annual revenues are estimated at $2.4 billion and about 10,000 people are expected to be employed worldwide, said Fred W. Lyons Jr., president and chief executive officer of Marion.