(Recasts, adds detail, background)
By Yadarisa Shabong
Aug 10 (Reuters) - The takeover battle between tobacco giant
Philip Morris and private equity firm Carlyle for
inhaled treatments maker Vectura will not be heading to
the auction ring on Wednesday after Carlyle said it will not
raise its bid.
U.S.-based Carlyle on Tuesday declared final its 155 pence
per Vectura share offer, which it sweetened last week to value
the British company at about 958 million pounds ($1.33 billion).
The proposal is below an increased 165 pence bid from Philip
Morris on Sunday.
Britain's takeover regulator on Monday had intervened in the
battle, saying that it would enter a rare head-to-head auction https://www.reuters.com/world/uk/britains-takeover-regulator-intervenes-battle-drugmaker-vectura-2021-08-09
if the bidders do not make final bids by Tuesday 1600 GMT (1700
BST).
Only a handful of British takeover fights have gone to
auction, with the highest profile in recent years being the
battle in 2018 for pay-television group Sky when Comcast
emerged as the winner of a single-day three round
blind auction.
London-listed shares of Vectura closed at 163.4 pence on
Tuesday after hitting a more than five-year high of 176 pence
earlier in the session. They have gained 33% in value since
Carlyle's first offer in May.
Vectura has been the target of several approaches since May
from the U.S.-based groups, which are eyeing the drugmaker's
expertise with inhalable formulations and device designs for
respiratory therapies for illnesses such as asthma.
The London-listed company had voiced its support for the
Carlyle offer last week, saying that it may be better positioned
under the ownership of the private equity firm, while noting the
uncertainties that could arise for its stakeholders as a result
of being owned by the Marlboro cigarette-maker.
However, Vectura withdrew its backing and also withheld
support for the higher offer from Philip Morris following the
intervention from the Takeover Panel.
Vectura did not immediately respond to a request for
comment.
A deal with either one of the U.S. companies would require
shareholder approval.
($1 = 0.7229 pounds)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak
Dasgupta and Lisa Shumaker)
