Pharmacy management company PharMerica Corp. on Tuesday rejected a $457 million unsolicited tender offer from Omnicare Inc., which is trying to take over the company.
Earlier this month Omnicare started a tender offer for all outstanding shares of PharMerica for $15 each in cash. PharMerica said Tuesday that the offer undervalues the company and recommended its shareholders reject the offer.
Omnicare, based in Covington, Ky., made its offer in August after it said PharMerica, which is based in Louisville, Ky., refused to start negotiations about a possible deal. PharMerica also rejected that offer from Omnicare, which dispenses drugs for nursing homes and other long-term care centers. After that, Omnicare launched the unsolicited tender offer.
PharMerica also said last month it had adopted a "poison pill" measure that will dilute the value of any shares Omnicare is able to buy.
Shares of PharMerica fell 24 cents to close at $14.39 before the rejection was announced. Omnicare's stock slipped 2 cents to $29.11.