Merck to Launch Euro 15 Billion Hostile Bid for Schering

Merck, a German multinational pharmaceutical, chemical, and life sciences company, is planning a €15 billion hostile takeover bid for Schering, another German pharmaceutical company. The bid, which is the largest in the pharmaceutical industry in Europe, comes after Schering rebuffed Merck's previous friendly overtures. A merger between the two companies would create a global pharmaceutical giant with combined annual sales of €11 billion and create Germany's first global pharmaceuticals group.

Key Takeaways:

Merck plans to make a €15 billion hostile bid for Schering, valuing the company at significantly less than its current market value.
The family that controls Merck, with a 73% stake, will contribute €1 billion towards the planned acquisition.
The takeover bid is expected to be highly leveraged, which may pose a risk to the company's financial stability.
Schering has a strong generic drugs division and a portfolio of high-profile drugs, including Betaseron, a treatment for multiple sclerosis.
The battle for control of Schering is expected to be a long and intense one, with no negotiations between the two companies and both parties seeking to outmaneuver each other.
Morgan Stanley, Goldman Sachs, and Deutsche Bank are working with Merck on its bid, while Schering has retained Morgan Stanley to defend against the takeover bid.

Statistics:

€15 billion - the estimated value of Merck's hostile bid for Schering
€11 billion - the combined annual sales of the merged company
€1 billion - the contribution from the Merck family towards the planned acquisition
73% - the combined stake of the Merck family in the company
120 - the number of members of the Merck family controlling the company

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