mgi pharma

has been bought by a Japanese company in a deal valued at $3.9 billion.

Bloomington-based MGI Pharma (Nasdaq: Mogn) was bought by Japan's Eisai Co. for $3.9 billion in cash. Eisai will pay $41.00 in cash for each of MGI Pharma's shares, marking a 22.6 percent premium over Friday's close and a 38.7 percent premium over MGI Pharma's closing price of $29.55 on Nov. 28.

In a statement, Eisai officials said the purchase will bolster the company's cancer drug business. The deal is expected to be complete in the first quarter of 2008.

MGI Pharma's CEO Lonnie Moulder said the company's board unanimously approved the deal after considering various strategic options, speaking with "many of the leading companies in the phamaceutical and biotechnology industry."

He added, "We expect this transaction to allow Eisai to significantly strengthen its oncology business and increase the likelihood of achieving our current strategic plan targets and our future revenue and earnings growth," he said.

The deal follows a move by MGI Pharma in late November to hire Lehman Brothers to help evaluate strategic alternatives.

MGI Pharma shares were up 20.3 percent, to $40.25 in premarket trading Monday.

Japan's Eisai to buy US MGI Pharma for $3.9 blnReuters Monday December 10 2007
TOKYO, Dec 10 (Reuters) - Japanese drugmaker Eisai Co Ltd said on Monday it would buy U.S. biopharmaceutical firm MGI Pharma Inc for $3.9 billion in cash to help it expand in the U.S. market and strengthen its pipeline in cancer treatments.
Eisai will offer $41 per share, in a bid approved by MGI, which represents a 38.7 percent premium to MGI's closing share price on Nov 28, the last business day prior to MGI's announcement it was exploring strategic alternatives. (Reporting by Edwina Gibbs) Construction companies advanced in Europe as France's Lafarge agreed to buy Orascom Cement for $13 billion. Shares of UBS traded higher as investors looked beyond its $10 billion subprime write-down. Asian markets ended lower in volatile trading.
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Bear Stearns downgraded MGI Pharma (MOGN:MOGN
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MOGN, , ) to peer perform from outperform after the company received a $3.9 billion offer from Japan's Eisai. The broker said the price is in line with its previous estimate, and sees few rival bidders emerging.

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C, , ) will be in focus as its board is meeting on Monday and Tuesday and may decide to name Vikram Pandit as its new CEO, according to a Wall Street Journal report late Friday.
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UBS, , ) warned that it will write down the value of its subprime mortgage holdings by a further $10 billion, leading to a loss in the fourth quarter and potentially wiping out all its profits for the year.
MGI Pharma Inc., (MOGN:MOGN
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MOGN, , ) of Bloomington, Minn., agreed to be acquired by Japan's Eisai Co. for $3.9 billion.
Reckitt Benckiser Group said it has offered to buy Adams Respiratory Therapeutics (ARXT:ARXT
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ARXT, , ) for $2.3 billion in cash. Adams is a specialty pharmaceutical company, headquartered in Chester, New Jersey, and is focused on the development, commercialization and marketing of pharmaceuticals for the treatment of respiratory disorders.
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MCD, , ) November U.S. same-store sales rose 4.4% from a year earlier, boosted in part by its premium roast coffee and breakfast menu sales.
U.S. private equity group Blackstone is reportedly putting together a consortium to launch a takeover bid for Rio Tinto Ltd. (RTP:RTP
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RTP, , ) to rival a proposed offer from BHP Billiton Ltd.
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Abby Deveney is a news editor for MarketWatch in London.
Companies in this story MGI PHARMA Inc (MOGN)
Citigroup, Inc (C)
UBS Ag (UBS)
Adams Respiratory Therapeuti (ARXT)
McDonald's Corporation (MCD)

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