Bidding war for Vectura sees Philip Morris set to prevail

13 August 2021

With private equity group Carlyle declining to increase its last offer of 155 pence a share in the bidding war for UK inhaled therapies specialist Vectura (LSE: VEC) earlier this week, US tobacco and nicotine giant Philip Morris (PMI) looks set to be the winner.

Vectura’s board yesterday saying it would support its 165 pence a share, £1.1 billion ($1.4 billion) bid, and would now recommend the offer to shareholders, just over 50% of whom are required to accept the bid for it to succeed. Details of PMI’s offer were announced on Monday.

The Vectura directors also noted that wider stakeholders could benefit from PMI’s significant financial resources and its intentions to increase research and development investment and “to operate Vectura as an autonomous business unit that will form the backbone of its inhaled therapeutics business.”

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