MERCK KGAA TO BUY MAJORITY STAKE IN SERONO

Merck KGaA will purchase 64.5 percent of the capital of Serono, and 75.5 percent of the voting rights, the company announced Sept. 21. The news follows an agreement with the Bertarelli family, which owns the majority stake of Swiss biotech company Serono.

Merck will pay $879 per share, a 20 percent premium over the share price listed on Sept. 20, 2006, according to a statement from Merck. The total equity value of the purchase will be approximately $13 billion. Merck executives said the merger will give the company a market-leading multiple sclerosis franchise and an annual R&D budget of roughly $1.27 billion.

After Serono's merger with Merck, creating Merck-Serono Biopharmaceuticals, the company will remain headquartered in Geneva, with U.S. headquarters in Boston. Pending approvals and antitrust clearances, the deal is expected to close in early 2007.