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Federal Trade Commission staff recommends blocking CSL purchase of Talecris; decision expected Thursday
HeraldSun, Australia
Blood products giant CSL has confirmed reports that US regulators have been advised to object to its $3.1 billion offer for plasma rival Talecris Biotherapeutics.
If the sale falls through, CSL must pay a $75 million fee to the private equity owners of Talecris, Cerberus Partners and Ampersand Ventures, within three months.
US Federal Trade Commissioners told CSL chief executive Brian McNamee last week their staff recommended legal action to block the takeover of Talecris, the number three plasma company behind CSL and Baxter Healthcare.
CSL, however, said it was confident the deal – put together more than eight months ago – should be acceptable to US anti-trust authorities.
Industry sources believe the venture capital vendors are keen to recover their investment and will push for CSL to challenge any court bid to stop the merger.
In a sign the market was neutral about CSL’s chances of signing off on one of the Australian biotech industry’s biggest deals, shares in the Melbourne company eased just 54c for a $30.35 close.
CSL expects FTC commissioners to vote on the acquisition on Thursday.
CSL said it had suggested “potential remedies which may enable approval”.
CSL spokesperson Rachel David, MD, would not disclose details of the remedies, other than to say CSL was willing to make some concessions to the US regulators.
“Until we know the rationale behind the case made to the commissioners, we cannot be more definitive,” David said.
Last financial year, Talecris had sales of $1.2 billion.
