Total consideration, including amounts payable in respect of stock options, share appreciation rights ("SARs"), warrants over New River's common stock and costs directly attributable to the business combination was approximately $2.6 billion at the price of $64 per share of New River's common stock, as analyzed below:
Cash consideration for 37.1 million outstanding shares of
New River common stock at $64 per share (net of 1.5 million
of common stock repurchased through a prepaid forward
purchase contract(1)) 2,276.0
Cash cost of settling New River's stock options and SARs 124.5
Cash cost for settling sold warrants over 4.0 million
shares of New River's common stock 133.0
Direct acquisition costs 60.4
(1) New River entered into this prepaid forward purchase contract with
Merrill Lynch in July 2006.
Accounting for the New River Collaboration Agreement
Prior to the acquisition of New River, on January 31, 2005 Shire entered into a collaboration agreement with New River which governed the development, manufacture and commercialization of VYVANSE for the treatment of ADHD in the US and RoW territories. In March 2005, this collaboration agreement was split into two separate agreements, the US Collaboration Agreement and the RoW Territory License Agreement (together the "New River Collaboration Agreements").
Under the terms of the Ne
|SOURCE Shire plc|
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