Croatia: Barr Will Not Buy Plivas Shares through Intermediaries

14. Juli 2006, 00:00

Jake Hansen, Vice President of the US Barr Pharmaceuticals , denied speculations that the company was going to buy ...

Jake Hansen, Vice President of the US Barr Pharmaceuticals, denied speculations that the company was going to buy Plivas shares through intermediaries. Namely, it is speculated that Zagrebacka Banka (ZABA) and Raiffeisen bank acquired on behalf of Barr about 3.5 per cent of Plivas shares.

Hansen said that Barr Management reached a decision to compete for Pliva only few months ago, only after Actavis published it was starting a takeover bid. He repeated several times that it was in the Barrs interest to abide by legal rules of this competition, thus alluding that Actavis was not doing the same.

On the other hand, Actavis filed a complaint to Croatian Financial Services Supervisory Agency (HANFA) five days ago, stressing the management of Pliva did not equally treat that the company’s bid. Hansen said he hopes that the Government would have in mind during the sale of its 18-per-cent ownership stake in Pliva not only the price of the company, but also Barrs offer on keeping production in Zagreb along with all employees, and increasing of production.

Hansen repeated that Barr currently offers HRK 755 per Pliva share, the price of which currently stands at HRK 770 on Zagreb Stock Exchange. HANFA also held a meeting with legal representatives of Actavis and Barr, where they were summoned to an explanation of the Croatian market regulator on how to keep their takeover attempts within the legal framework.

The agency decided to inform lawyers of these two companies on precise rules of the game, which they must respect in full in order to avoid legal punishment. HANFA took this step after a series of mistakes conducted by these two competitors, in some cases even possible breaches of the law detected in the past couple of weeks. HANFA also announced it would be investigating certain transactions related to the acquisition of Plivas shares.
In cooperation with and under the responsibility of Eastbusiness, the business information service for Central and Eastern Europe

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