Warner Chilcott bidder drops out

A DRAWN-OUT battle for control of Warner Chilcott looked less likely yesterday as one of the three bidders for the Northern drug firm dropped out of the race to join forces with the frontrunner.

Shares in the company were unchanged at £8.64 after the American group, which is headed by private equity firms Bain Capital and Thomas H Lee, threw its weight behind Waren Acquisition, the special purpose company set up by banking giants JP Morgan and Credit Suisse First Boston. Waren’s €2.3 billion offer, which valued Warner Chilcott at £8.62 per share, was recommended by the company’s board to shareholders last week.

Waren told the stock exchange that all of the terms and conditions of the takeover, as originally agreed with the Warner Chilcott board, remained in place and were unchanged. The takeover group is now indirectly controlled by Credit Suisse First Boston subsidiary DLJ Merchant Banking, JP Morgan Partners, Bain Capital and Thomas H Lee. The company said any of the four bodies may choose to sell on all or part of their interests in Waren after the takeover becomes effective.