Stada Takeover

Playing Poker with Generic Drugs

  • Why it matters

    Why it matters

    While Stada’s leadership is doing anything it can to make the takeover happen, investors looking to make a quick buck can still thwart the deal.

  • Facts


    • A first takeover bid for Stada fell through earlier this year, but the second attempt is only a token improvement over the last.
    • US investor Paul Singer recently bought a 9-percent stake in Stada and hasn’t signaled yet whether he’s willing to tender his shares.
    • The Stada CEO claims hedge fund money will allow the drug maker to make acquisitions and grow much faster abroad.
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Boehringer Ingelheim
Here today, gone tomorrow? Source: DPA

Engelbert Tjeenk Willink, the boss of drug maker Stada, told Handelsblatt that he is convinced that shareholders will accept the second takeover bid by two private-equity funds, Bain Capital and Cinven. “I consider chances to be very high. Bain and Cinven made a good offer that was upped slightly from the previous bid. We can wholeheartedly recommend that our shareholders accept it,” Mr. Willink said. “I can hardly imagine the offer falling through again,” he added. The deadline to tender shares ends on August 16. As of July 25, only 20.44 percent of Stada shares had been tendered.

In a first takeover bid for Germany’s fourth-largest pharmaceuticals firm the investors missed the threshold of shareholder acceptance, which was set at 67.5 percent. The second time around, that threshold was lowered to 63 percent, and Bain and Cinven increased their offer by 25 cents to €66.25 per Stada share. The current offer values the company at €4.1 billion ($4.82 billion).

Since the first takeover attempt fell through, hedge funds have flocked to Stada, best known for its generic drugs, in hopes of making a quick buck. “It’s surely kind of a problem that our shareholder structure is different from earlier this year. Some shareholders apparently are very focused on the short term,” Mr. Willink told Handelsblatt.

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