(RTTNews) - Millennium Pharmaceuticals
(MLNM) soared in pre-market trading, up about 51 percent. The climb came on news that the company will be acquired by Takeda
(TKPHF.PK) for about $8.8 billion.
The stock was up $8.35 around 8:10 am ET, rising to $24.70. If pre-market gains hold, the stock will open at its highest level sine March 2002.
Millennium Pharmaceuticals said early Thursday that it would be acquired by Takeda Pharmaceutical for about $8.8 billion, through a cash tender offer of $25.00 per share. The deal, unanimously approved by the Boards of Directors of both companies, is expected to close in the second-quarter of 2008.
Upon completion of the acquisition, Millennium will become a wholly owned subsidiary of Takeda Pharmaceutical Company Limited, and will continue operations in Cambridge, Massachusetts, as a standalone business unit. Millennium will be known as Millennium Pharmaceuticals, Inc., a Takeda Company.
Takeda expects the acquisition to enhance its earnings starting in the fiscal year ended March 2010 before transaction related amortization. The addition of Millennium will enhance Takeda's growth profile immediately.
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