Vectura’s board faces a tough decision over the inhaler maker’s future as they weigh up offers from a cigarette giant and a private equity firm.
Marlboro-maker Philip Morris International (PMI) and Carlyle both want the Wiltshire company.
The pair have been outbidding one another for months and this week almost went head-to-head in a rare auction process.
Bidding battle: UK inhaler maker Vectura is being pursued by Marlboro-maker Philip Morris International and private equity firm Carlyle
Carlyle withdrew before it had started by declaring its bid of £958million, or 155p per share, final. PMI’s most recent bid stands at £1.02billion, or 165p, and puts it in pole position to take over.
Yesterday, shadow health secretary Jonathan Ashworth said Vectura’s board ‘must exercise their duty of care to all stakeholders, resist Philip Morris, and say they don’t want to be bought by Big Tobacco’.
Neil Wilson, analyst at Markets, said: ‘These bids are a problem. The best place for the company to grow is in the public markets.
‘It is now a choice for the Vectura board between the devil and the deep blue sea. Investors who wanted to stick long term with Vectura have been done over.’
PMI wants Vectura’s tech to turn itself into a ‘healthcare and wellness’ firm. It has pledged to use its global reach to help Vectura sell its products.
But campaigners are sceptical about PMI’s motives. Malcolm Clark, senior cancer prevention policy manager at Cancer Research UK, said: ‘Becoming tobacco-owned would also threaten the vital work done by Vectura.’
Nicholas Hopkinson, chairman of Action on Smoking and Health, added: ‘From a financial point of view it may be the highest offer but it will kill the company.’
Others view private equity giant Carlyle as worse, saying Vectura could be asset stripped and sold again. But Vectura’s board has hinted it agrees with those taking an ethical health stand.
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