German drugmaker Stada Arzneimittel has put a halt on deal negotiations as the CEO pushes management to cut costs and raise profit guidance, in an effort to stimulate higher offers in the bidding war, says Bloomberg sources.
Sources say the the company, which specializes in generic and OTC drugs, could increase profit guidance when it reports annual results on Thursday.
Reported offers have come from Advent International Corp. and Permira, as well as Cinven Ltd. and Bain Capital. Shanghai Pharmaceuticals Holding is reportedly considering joining the race. Stada let the deadline for a 3.61 billion-euro offer from Advent pass last month to keep the process open for other bidders.
Stada’s management canceled planned presentations to the bidding groups. The delay is irritating companies that have already made offers and planned to travel to the company’s headquarters in Bad Vilbel for talks, Bloomberg sources say.
Read the Bloomberg article