Article: $8.5bn Cyanamid bid threatens SmithKline deal

US pharmaceuticals and medical supplies company American Home Products stunned Wall Street last night with an $8.5bn ( pounds 5.5bn) takeover bid for American Cyanamid, the drug, pesticide and medical products group.

The cash offer is priced at $95 per share, a 50 per cent premium over Cyanamid's share price of $63.75 late Tuesday, before trading in its shares was suspended pending the announcement.

The move came amid market speculation that SmithKline Beecham was on the verge of agreeing an asset swap with Cyanamid, under which SmithKline would receive prescription drug and consumer brand busiesses in return for transferring its vaccine and animal health businesses to Cyanamid.

SmithKline ...

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