NEW YORK (AP) — Omnicare Inc. said Tuesday it is giving up on its hostile bid to acquired fellow long-term pharmacy operator PharMerica Corp. after antitrust regulators opposed the deal.
Omnicare, of Covington, Ky., said Tuesday that it had allowed its tender offer for PharMerica shares to expire Friday. It did not buy any stock in PharMerica and all shares tendered will be returned.
PharMerica had always opposed the deal, which valued it at $457 million, or $15 per share.
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In January the Federal Trade Commission said it was filing a lawsuit to block the deal, saying the acquisition would lead to higher drug prices. The FTC said then that a combination of the nation's two biggest long-term care pharmacies would raise the cost of Medicare Part D prescription plans, which cover drugs for nursing home residents and other Medicare beneficiaries.
"While we continue to strongly disagree with the FTC's decision to seek to block the proposed transaction, we do not believe it is prudent to invest significant time and money in a lawsuit at this time," Omnicare said in a press release.
PharMerica, of Louisville, said it was pleased that Omnicare let the offer expire. The company said the offer was too low and that it always believed the deal would face opposition because of antitrust concerns.
Shares of Omnicare rose 2 cents to $34.76 in midday trading, while PharMerica stock lost 33 cents, or 2.5 percent, to $12.68.
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