RLPC-Ratiopharm suitors to resubmit bids by Dec.3 -sources
* Second set of indicative bids due Dec. 3
* Bidders expect offers could now top 3 billion euros
By Zaida Espana and Philipp Halstrick
LONDON/FRANKFURT, Nov 25 (Reuters) - Bidders for German generic drugmaker Ratiopharm have been asked to confirm non-binding offers by Dec. 3, two sources close to the deal said on Wednesday.
Ratiopharm's sale attracted strong interest in the initial bid phase in early November, with about ten trade buyers and private equity firms submitting bids, some in excess of 2 billion euros ($3 billion), people familiar with the procedure said at the time. [ID:nLB286675]
A source close to the deal told Reuters on Wednesday that three to five suitors are likely to drop out at this stage, while some will increase their offers.
Another source added that some of the bidders expected Ratiopharm's owner VEM could even get bids of more than 3 billion euros -- closer to VEM's initial target price tag of around 3.5 billion, which had been seen as optimistic given cost pressures in the German drug industry. [ID:nLN359276]
VEM is controlled by the family of late German billionaire Adolf Merckle, who committed suicide in January. Ratiopharm is being sold as part of an agreement with lenders to cut the heavy debts in his business empire.
Sources said previously that healthcare trade buyers include Israel's Teva (TEVA.TA), Mylan (MYL.O) of the United States, France's Sanofi-Aventis (SASY.PA), China's Sinopharm (1099.HK) and Iceland's Actavis.
Private equity bidders include TPG [TPG.UL], Advent in collaboration with Goldman Sachs (GS.N), Permira [PERM.UL], and KKR [KKR.UL].
Pfizer (PFE.N) and EQT have also bid, several sources said.
A Ratiopharm spokesman declined to comment. Nobody at EQT and Pfizer could immediately be reached for comment. ($1=.6708 euros) (Additional reporting by Ludwig Burger in Frankfurt, Quentin Webb in London and Sven Nordenstam in Stockholm; Editing by Mike Nesbit) ((zaida.espana@reuters.com; +44 20 7542 7996; Reuters Messaging zaida.espana@reuters.com@reuters.net))
