* Vectura withdraws support for Carlyle deal
* UK firm recommends Philip Morris offer
* Deal is second by Philip Morris in a week
* Shares jump 14%
(Adds Carlyle statement, analyst comment, detail, updates
shares)
By Yadarisa Shabong
July 9 (Reuters) - Cigarette maker Philip Morris
International agreed on Friday to buy Vectura for 1.05
billions pounds ($1.44 billion), giving the U.S. firm access to
the British drugmaker's respiratory ailment treatments and
inhaling device technology.
The deal, which topped a proposal by investment firm Carlyle
Group, offers 150 pence a share to investors in Vectura,
which makes 13 approved inhaled medicines and associated
devices.
The offer by Philip Morris, which also makes a range of
vaping products, is 11% higher than Vectura's closing price on
Thursday and beats Carlyle's bid agreed in May of 136 pence.
Vectura, whose shares rose as much as 14% to 154 pence, said
it was withdrawing its recommendation for the Carlyle offer in
favour of the Philip Morris bid and was adjourning a shareholder
meeting it had convened on Monday.
Carlyle said it was "considering its options and a further
announcement will be made in due course." It said it encouraged
Vectura shareholders to take no action in the meantime.
Analysts at Peel Hunt said Philip Morris bid underscored the
strategic value of Vectura's technology platform, reducing the
likelihood of private equity participation in the sale process.
The deal is Philip Morris' second international acquisition
in the past week, after agreeing to buy nicotine gum maker
Fertin Pharma from private equity firm EQT for 5.1
billion Danish Krone ($812 million).
The cigarette maker launched its 'beyond nicotine' strategy
in February, saying it expected more people to quit smoking in
the coming years amid health concerns and regulatory crackdowns.
The U.S. company said it planned for Vectura to operate as
an independent unit at the centre of its inhaled therapeutics
business, seeking to use its expertise in inhalation and
aerosolization in areas such as respiratory drug delivery.
Philip Morris said the acquisition of Vectura meant "the
companies can create a fully-owned pipeline of products across a
broad range of sectors in the prescription drug and
over-the-counter categories."
Philip Morris Chief Executive Jacek Olczak said acquiring
Vectura and Fertin Pharma would help the U.S. firm's 'beyond
nicotine' strategy "by expanding our capabilities in innovative
inhaled and oral product formulations."
The deal requires the approval of shareholders, among other
conditions.
($1 = 0.7264 pounds)
($1 = 6.2842 Danish crowns)
(Reporting by Yadarisa Shabong in Bengaluru; Editing by Shounak
Dasgupta and Edmund Blair)
