Berger Calls Off Ivax Mergers

Bergen Brunswig Corp. called off its planned $1.4-billion merger with Miami-based Ivax Corp., ending a deal that had been criticized by Wall Street analysts since it was announced four months ago. The giant Orange-based drug distributor and the maker of generic drugs blamed each other for the breakup. Bergen said it will sue its erstwhile partner in a New York federal court today. A Bergen spokeswoman said the firm will seek damages for Ivax’s alleged breach of the merger agreement, but declined to elaborate. An Ivax statement blamed Bergen for unilaterally terminating the deal “without good cause,” but executives couldn’t be reached for comment. The merger plan--which would have been the first between a large drug wholesaler and a big drug maker--sent stocks of both companies plummeting Nov. 11, the day it was announced. Bergen stock fell $5.125 that day to close at $27.625 on the New York Stock Exchange, while Ivax slumped $3.375 to $12.50 on the American Stock Exchange. Bergen’s stock, which has recovered in recent weeks, presumably on investors’ belief that the deal would be called off or restructured, closed Thursday at $31.50, with no change. Ivax ended the day at $12.375, off 25 cents. The cancellation of the deal was announced after the stock market closed.