New York investment house Oppeneheimer today published a survey of Teva Pharmaceutical Industries Ltd. (Nasdaq: TEVA; TASE: TEVA), ahead of the vote by shareholders of Barr Pharmaceuticals Inc. (NYSE: BRL) regarding the acquisition offer by the Israeli company.
Oppenheimer's analysts give Teva price of $58 per share, reflecting a premium of about 44% above the market value. They expect Teva to reach its target price and that the company will report profits of $2.95 per share on a non-GAAP basis in 2009.
Teva announced its acquisition of Barr three months ago and said it planned to complete the transaction by the end of 2008. The Barr shareholders meeting to vote on the acquisitions is one of the important stages in the acquisition.
Oppenheimer does not see Teva having any problems in raising the required funds to complete the deal - about $2.7 billion based on an overall transaction of $7.5 billion. The funds are expected to be raised near the closing of the deal at the end of 2008.
IBI Investment House analysts Yuval Zehira and Noa Weisberg estimate that Teva will need to raise $3.5 billion to complete the acquisition of Barr, and that the capital will be raised by issuing bonds and convertible bonds. IBI sees Teva raising the capital in early 2009 even though the deal is to be completed by the end of 2008.
Published by Globes [online], Israel business news - www.globes-online.com - on October 19, 2008
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