Schering is the only company of the DAX who sits in the German capital

Merck selects the passage in force. The German group of Pharmacy and chemistry yesterday formalized its offer unsolicited 14.6 billion euros on Schering, but refused to back its prices despite the rejection of its target. "We want to create a global company with its seat in Germany", said Jon Baumhauer, representative of the Merck family, which holds 73 of the group, adding that, unlike the France, where policies play an active role, "we must create we same national champions". The two companies have a combined 9 billion euros in the pharmacy turnover and would become the number, before Boehringer-Ingelheim, a German and Bayer and the 14th World. The Germany lost its pharmaceutical leadership in the 1990s with the merger of Hoechst and Rhone-Poulenc, giving rise to Aventis, purchased from sanofi.

"We need a critical size for impose us harsh competitive global pharmaceutical companies", said Elmar Schnee, Member of the Executive Board of Merck in charge of the pharmacy. Together, the two groups claim a pipeline of 30 projects and a budget of EUR 1.3 billion research, a respectable size, but far from giants such as Pfizer and Sanofi-Aventis. The firm of Darmstadt is synergies of costs of EUR 500 million per year, but remains opaque on potential job losses. Wilhelm Simson, Chairman of the Supervisory Board, who had already spoken with Chancellor Angela Merkel will speak this sensitive issue today with Klaus Wowereit, Minister-President of Berlin. Schering is the only company of the DAX who sits in the German capital.

The charm of the operation lies primarily in the "complementarity of the two companies", said Michael Römer, Chairman of the Board. In fact, with Schering, Merck can immediately enter Japanese and US pharmaceutical markets. On the strategic plan, it puts forward its own forces in Oncology (with the cancer drug Erbitux) and those of his compatriot in obstetrics, where he is world leader (with the pill Yasmin), and nerve diseases (with Betaferon). But he refused to abandon its chemicals activities, essentially liquid crystals, whose success precisely such an operation, according to Merck.

The silence of Allianz

The company already holds 5 of Schering wants to borrow the money for operation at banks, Bear Stearns, Deutsche Bank and Goldman Sachs. She then wants to carry out a capital increase between 500 million and EUR 4 billion. The family shareholder did not participate and was ready to reduce its share of 73 to 60. On the other hand pledged to contribute to the operation directly to the tune of EUR 1 billion. This financing plan is ambitious, and a competing offer would be difficult for Merck. But Schering renewed yesterday its rejection of the offer, the believing too low. Its Chairman of the Supervisory Board of Guiseppe Vita made out the appearance of a White Knight. "I imagine that someone will begin to think about", he said, adding that a rival offer should not intervene under the bar of 90 euros. Yesterday, the action jumped from 25.3 to EUR 83.6 but Michael Becker, Chief Financial Officer of Merck, pointed out that 77 euros per share offer would be made as to the shareholders at the end of March. The group said that Allianz, the first shareholder of Schering with more than 10 of the capital, "do not the reserve of the Executive Board". The insurer refused to comment on. Merck also announced the arrival in September to the Executive Board of Karl-Ludwig Kley, current Chief Financial Officer of Lufthansa.