Charles River cancels acquisition of China’s WuXi Pharmatech after shareholder opposition
By APFriday, July 30, 2010
Charles River Labs calls off WuXi Pharmatech buy
BEIJING — Charles River Laboratories International Inc., a U.S. medical research equipment and services company, said Friday it is canceling a $1.6 billion acquisition of WuXi PharmaTech after shareholder objections.
Charles River’s announcement of the planned purchase in April came amid a rush by foreign drug companies to expand research and development operations in China.
But Charles River shareholders objected to the deal’s price and strategic value.
“Given their concerns about the proposed transaction, and our commitment not to proceed without their support, we have decided that terminating the transaction is the appropriate action to take,” said Charles River’s chairman, James C. Foster, in a statement.
The company, based in Wilmington, Massachusetts, said it would pay WuXi PharmaTech a $30 million break fee.
The deal would have given Charles River drug-testing facilities in the Chinese cities of Shanghai, Suzhou and Tianjin.
Investment firm Jana Partners LLC, which owns a little more than 7 percent of Charles River’s stock, urged shareholders to reject the takeover.
Jana Partners objected to the price and pointed to what it called Charles River’s “poor track record” of integrating acquisitions.
Charles River Laboratories: www.criver.com/fr-FR/pages/home.aspx
