# UK’s Vectura takeover battle heats up as Carlyle outbids Philip Morris Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2021-08-06 Category: INVESTING Category URL: https://financedigest.com/category/investing Meta Title: Carlyle Group outbids Philip Morris in Vectura takeover Meta Description: Private equity firm Carlyle Group beats tobacco giant Philip Morris in takeover battle for British drugmaker Vectura, offering £958 million. URL: https://financedigest.com/uks-vectura-takeover-battle-heats-up-as-carlyle-outbids-philip-morrishtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2021-08-06t161423z2lynxmpeh750whrtroptp4carlyle-group-results-1736838039943-compressed.jpg) By Pushkala Aripaka and Yadarisa Shabong (Reuters) -Private equity firm Carlyle Group on Friday outbid tobacco company Philip Morris in the takeover battle for Vectura, offering to buy the British drugmaker for about 958 million pounds ($1.3 billion). U.S.-based Carlyle [increased its offer](https://www.financedigest.com/carrefour-management-increases-offer-in-wage-talks-with-unions.html "Carrefour management increases offer in wage talks with unions") to 155 pence from 136 pence per Vectura share in cash, topping Philip Morris’ 150 pence proposal in July. Vectura’s shares jumped as much as 7% to a more than four year high of 164.8 pence, indicating [investors may be expecting a counter bid](https://www.financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-source.html "Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source"). Vectura, which makes respiratory treatments, said it was now backing Carlyle’s [offer and withdrawing its recommendation](https://www.financedigest.com/germanys-slm-recommends-shareholders-accept-nikon-takeover-offer.html "Germany’s SLM recommends shareholders accept Nikon takeover offer") for Philip Morris’ proposal. [Philip Morris](https://www.financedigest.com/philip-morris-offers-eu-concessions-in-16-billion-swedish-match-deal.html "Philip Morris offers EU concessions in billion Swedish Match deal") did not immediately respond to a request for comment. The previously agreed deal with Philip Morris came as [big tobacco companies are trying to change](https://www.financedigest.com/from-boom-to-bottom-and-now-big-change-renault-and-nissan-reshape-alliance.html "From boom to bottom and now big change: Renault and Nissan reshape alliance") their image following years of negative press and lawsuits for marketing and selling health-harming cigarettes. London-listed Vectura said it might be better positioned under Carlyle’s ownership, noting the [“reported uncertainties relating to the impact on Vectura’s wider stakeholders arising as a result of the possibility of the company](https://www.financedigest.com/global-body-urges-eu-to-make-company-life-simpler-by-aligning-climate-reporting.html "Global body urges EU to make company life simpler by aligning climate reporting") being owned by PMI (Philip Morris). Vectura makes inhaled medicines and [devices to treat respiratory](https://www.financedigest.com/digitized-escalation-to-drive-the-respiratory-care-devices-market.html "Digitized escalation to drive the Respiratory Care Devices Market") illnesses such as asthma, and counts Novartis and GSK among its customers. It has also agreed to develop a potential inhaled [treatment for COVID-19](https://www.financedigest.com/renal-cyst-treatment-market-covid-19-industry-analysis-future-trends-opportunity-growth-regional-outlook-and-forecast-2028.html "Renal Cyst Treatment Market COVID-19 Industry Analysis, Future Trends, Opportunity Growth, Regional Outlook and Forecast 2028") with Inspira. Carlyle’s offer in May also valued Vectura at 958 [million pounds](https://www.financedigest.com/uk-launches-270-million-pound-fund-to-support-green-heating-technology.html "UK launches 270 million pound fund to support green heating technology"), but included a 19 pence per share dividend that was paid the following month. Philip Morris’ [bid of 1.05 billion](https://www.financedigest.com/eu-opens-antitrust-probe-into-broadcoms-61-billion-vmware-bid.html "EU opens antitrust probe into Broadcom’s billion VMware bid") pounds also took into consideration the dividend. This (Carlyle’s latest proposal) is a highly attractive offer for Vectura shareholders, which secures the delivery of [future value in cash](https://www.financedigest.com/cash-me-if-you-can-the-future-of-contactless-commerce.html "Cash me if you can: The future of contactless commerce"), with no regulatory contingencies to completion,” Vectura Chairman Bruno Angelici said. Vectura [shareholders AXA Investment Managers](https://www.financedigest.com/edf-staff-shareholders-file-complaint-over-management.html "EDF staff, shareholders file complaint over management"), TIG Advisors and Berry Street Capital have all indicated their support for the deal, Carlyle said. They together hold a stake of about 11.2% in the drugmaker. Takeovers for British companies [hit a 14 year high by value in the first seven months](https://www.financedigest.com/german-bonds-set-for-worst-month-in-decades-as-inflation-hits-new-highs.html "German bonds set for worst month in decades as inflation hits new highs") of 2021, driven by relatively cheap valuations due in part to the pandemic and Brexit. ($1 = 0.7213 pounds) (Reporting by Pushkala Aripaka, Priyanshi Mandhan and Yadarisa Shabong in BengaluruEditing by Arun Koyyur and Mark Potter) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---