Merck’s Knockout Cubist Bid Should Fend Off Rivals

Merck & Co.’s offer for Cubist Pharmaceuticals Inc. may be just steep enough to deter rival bidders.

Merck says it’s paying $102 a share, or about $9.5 billion including net debt for the maker of antibiotics. The price is more than 40 times the profit Cubist earned before interest, taxes, depreciation and amortization in the 12 months through September. That ranks among the 10 most expensive drug-company takeovers this decade, according to data compiled by Bloomberg.