Deals

Philip Morris Nears Drugmaker Takeover as Board Backs Offer

  • Vectura cites financial resources, R&D investments, autonomy
  • Philip Morris now needs just over 50% shareholder backing
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Philip Morris International Inc. moved closer to the acquisition of Vectura Group Plc, a maker of asthma drugs, after the company’s board backed the tobacco giant’s 1.02 billion-pound ($1.4 billion) offer over a lower bid from Carlyle Group Inc.

Vectura described Philip Morris’s offer of 165 pence a share as “fair and reasonable,” in a statementBloomberg Terminal Thursday. Carlyle, which offered 155 pence, had maintained that it would be a more suitable parent for a drug company than a seller of cigarettes. Neither can raise its bid further.