Firm rejects Novartis offer

Tuesday, Sept. 6, 2005 | 11:34 a.m.

NEW YORK -- Chiron Corp. Monday said its board rejected an all-cash takeover offer from Novartis AG, saying the offer is inadequate.

Novartis spokesman John Gilardi told The Associated Press that Novartis is aware of the statement from Chiron's board, but the pharmaceutical company had no immediate response.

On Sept. 1, Basel, Switzerland-based Novartis offered to buy about 58 percent of Chiron shares it does not already own at $40 per share.

In a statement issued on Monday, Chiron acknowledged that over the 10 years since Novartis has been Chiron's largest stockholder, the two companies have regularly discussed a number of strategic initiatives, including mergers, significant acquisitions and other transactions, including transactions initiated by Novartis.

"As a result, Chiron has had an on-going dialogue with Novartis regarding its intentions with respect to its investment in Chiron," Chiron said in the statement. But, the Emeryville, Calif., biopharmaceutical company said its "independent directors have not, however, solicited an offer to buy Chiron."

Chiron added in its statement on Monday that after a thorough analysis and consideration of Novartis' offer, its independent directors determined that the offer is inadequate.