Related topics

NeighborCare Rejects Omnicare Bid

May 25, 2004

BALTIMORE (AP) _ NeighborCare Inc., which supplies drugs to nursing homes, Tuesday said it rejected a $1.24 billion acquisition offer from rival Omnicare Inc., saying the offer was neither in the company’s nor shareholders’ best interests.

In March, Baltimore-based NeighborCare opposed another offer from Omnicare.

``We had no interest then, and we have no interest now, in pursuing a transaction, nor in any further discussion of the matter,″ NeighborCare Chairman, Chief Executive and President John Arlotta said in a letter to Omnicare President and Chief Executive Joel Gemunder.

An representative Covington, Ky.-based Omnicare wasn’t immediately available to comment on the rejection.

Omnicare’s offer of $30 a share, made Monday, was a 70 percent premium to NeighborCare’s previous closing stock price of $17.67.

NeighborCare’s shares soared on the news of the offer, closing Monday at $27.91. In afternoon trading Tuesday, the shares changed hands at $28.25, up 1.2 percent, on the Nasdaq Stock Market.

Omnicare’s New York Stock Exchange-listed shares were at $42.54, up $1.94, or 4.8 percent.

Update hourly