King bumps Alpharma bid, threatens proxy fight

King Pharmaceuticals bumped its bid for Alpharma to $1.6 billion, an increase of 12 percent, and made it clear that it's ready to get hostile if Alpharma continues to play hard to get. King's offer now stands at $37 a share, a 67 percent premium over the August 4 close, just before King made its initial overture. Alpharma rejected that $33-per-share offer as too low.

In a letter, King called the higher bid a "compelling offer." And the pharma company is not taking no for an answer. Any further resistance will be met with a proxy battle for control of Alpharma's board, King warned.

"We have determined it is necessary to take our enhanced offer directly to Alpharma stockholders in order to deliver significant value to them as expeditiously as possible," said King Chairman and Chief Executive Brian A. Markison this morning. "We are committed to completing this transaction and remain willing to work cooperatively with Alpharma."

Investors have been looking for a higher bid all along, pushing the share price past the $33 level since the first bid was disclosed.

- here's King's release on the bid
- check out the report from the Wall Street Journal

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