Genetics Institute shareholders on Thursday approved theacquisition by American Home Products Corp. of 60 percent ofGI stock through a merger transaction.
The merger becomes effective today. Common shares of thecompany (NASDAQ:GENI) have ceased trading and have beenreplaced by depositary receipts for a new common stock thatwill trade beginning today under the ticker symbol GENIZ.
AHP acquired from the public shareholders 40 percent of theoutstanding GENI shares for $50 per share in cash. AHP is alsobuying about 9.5 million newly issued shares for about $300million.
For each share of GENI currently held, GI shareholders received$20 in cash and 0.6 shares of the new common stock. The newshares, on which AHP has a call option through Dec. 31, 1996,won't be distributed. Instead, shareholders received thedepositary receipts, which will trade like stock.
GENI shares closed at $39.25, down 50 cents, on Thursday.
(c) 1997 American Health Consultants. All rights reserved.