Drug-manufacturer Bristol-Myers Squibb Co. announced on Sunday that it would spin off its Mead Johnson Nutrition Co. in order to focus on its bio-pharmaceutical business.
Under the deal, Bristol-Myers will give its shareholders roughly $1.11 of Mead Johnson shares for each $1 in Bristol share they tender.
The accurate ratio will be determined by a 10 per cent discount to the daily volume-weighted average prices of Bristol-Myers and Mead Johnson shares from December 8 to December 10.
New York-based Bristol-Myers, which possesses 83 per cent of Mead stock, said that the deal was a part of its divestment strategy that would transform it from a traditional drug firm into a bio- pharmaceutical company.
James M. Cornelius, Chief executive of Bristol-Myers said, "With a successful execution of this split-off, we fully consider ourselves a BioPharma company."
The exchange offer is scheduled to expire on December 14.
Source: topnews.co.uk
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