LAKE FOREST, Ill. (AP) -- Drug and medical device maker Hospira Inc. said Wednesday it has extended its $145 million tender offer for Javelin Pharmaceuticals Inc., citing unsatisfied conditions of the buyout.
The offer, which was scheduled to expire Tuesday, is now extended to June 2.
Hospira did not provide information on the "unsatisfied conditions," but Javelin disagreed with the assertion. Javelin said Hospira was using a supply chain problem in the United Kingdom over the pain treatment Dyloject as an excuse.
"Javelin disagrees with Hospira's position under the merger agreement that the conditions to the tender offer have not been fully satisfied and believes that all of the conditions of the tender offer have been satisfied," the company said.
Hospira, in a statement Wednesday, said it continues working with Javelin to satisfy all the conditions of the buyout. The company has so far tendered 51.1 million Javelin shares, representing about 79 percent of the company's outstanding stock.
Javelin walked away from a deal with Myriad in April, citing too low of an offer. Myriad, which is based in Salt Lake City, had offered to buy all outstanding shares of Javelin common stock in exchange for Myriad stock.
Hospira offered $145 million in cash, or $2.20 per share. Hospira also said it will provide $8.3 million to repay the principal and accrued interest under a similar deal Javelin made with Myriad and $4.4 million for a termination fee and other expenses to get out of the Myriad offer.
Shares of Hospira fell 38 cents to $52.33 in afternoon trading. Meanwhile, shares of Javelin plunged 43 cents, or 19.6 percent, to $1.77.
