Chairman Spearheads Offer for Quintiles
Quintiles Transnational Corp., which provides testing services to drug makers, said a group led by its chairman has offered to buy the company for $1.34 billion in cash.
The bid of $11.25 a share represents a 35% premium on Quintiles’ closing stock price Friday, but analysts said it was too low and did not reflect the company’s long-term prospects.
The offer came from a new company co-owned by Quintiles Chairman Dennis Gillings. Analysts said the bid reflected growing pressure on pharmaceutical services companies amid a slowdown in drug approvals by the Food and Drug Administration and renewed uncertainties as the drug industry consolidates.
Quintiles’ shares rose $1.65 to $9.96 on Nasdaq.