Bergen Settles Legal Battle With Ex-Merger Target Ivax
Medical supplies distributor Bergen Brunswig Corp. said it has settled its lawsuit with onetime acquisition target Ivax Corp. Terms of the settlement have not been disclosed, and records in the lawsuit have been sealed by the court at the request of the two companies.
Bergen, one of the nation’s largest drug and surgical supply distributors, said in November that it would acquire generic-drug maker Ivax in a $1.6-billion stock swap.
It would have been the nation’s first merger of a major drug distributor and a major drug maker, but Bergen called off the acquisition in March and sued Ivax for breach of contract. Miami-based Ivax later countersued, maintaining that Bergen Brunswig had no cause to cancel the deal.
Some Bergen investors, however, had questioned the company’s decision to buy money-losing Ivax, and some Ivax shareholders wanted a higher price than Bergen was offering.
Additionally, industry analysts criticized the deal as financially unsound.
Officials at both Bergen Brunswig and at Miami-based Ivax declined to comment about the settlement.
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