* Sees rev synergies of at least $75-$100 mln by '13
* Says got second request for more information from FTC
* Says will not proceed with deal without shareholder nod
July 13 Drug research firm Charles River
Laboratories International Inc (CRL.N), which is trying to buy
Chinese rival WuXi PharmaTech Inc WX.N, said it sees revenue
synergies of at least $75 million to $100 million by 2013 from
The company also said it received a second request from the
U.S. Federal Trade Commission on July 12 for additional
information on certain services.
Charles River's plan to buy WuXi for $1.6 billion in cash
and stock has been facing active opposition from the U.S.-based
contract research organization's biggest stakeholders, who
called the deal expensive, sub-optimal and risky and asked for
more details on the expected revenue synergies. [ID:nSGE65G0H7]
The investors had also warned the company "not to endorse
any revision to the proposed WuXi transaction that bypasses the
need for a stockholder vote."
In an investor presentation on its website, Charles River
said it will not proceed with the deal without shareholder
Both Charles River and WuXi have scheduled their
shareholder meeting to vote on the deal on Aug. 5 and Charles
River said it is still expecting the deal to close by the
Analysts had said Charles River, which has been saying that
it received "overwhelmingly positive" response from its clients
on the deal, can give more details on the client responses in
order to convince its investors.
In its statement, Charles River also quoted several
comments from top executives of pharmaceutical and
biotechnology companies supporting the deal, without naming the
companies or the executives.
Charles River shares were up about 2 percent to $35.06 on
low volumes in morning trade on the New York Stock Exchange,
while WuXi shares were up 1 percent to $16.04.
(Reporting by Esha Dey in Bangalore; Editing by Aradhana