Chiron Corp. and Cetus Corp. on Tuesday announced thatstockholders meetings have been scheduled for Dec. 10 to voteon the proposed merger of the two companies.
The Emeryville, Calif.-based companies were to send jointproxy statements to stockholders beginning today.
Since Oct. 10, Chiron stock (NASDAQ:CHIR) has been tradingabove the $49 to $67 per share price range set in the deal. Ifthe deal closes while Chiron stock is within that range, Cetusshareholders will receive three-tenths of a share of Chironstock for every Cetus share. Chiron shares closed at $75.25 onTuesday, up $2.50.
If Chiron's median trading price is above $67 for each of the 15trading days ending on Nov. 26, the ratio automaticallydecreases so that the value of stock received by Cetusshareholders will not exceed $20.10 per share. Cetus(NASDAQ:CTUS) closed at $18, up 13 cents, on Tuesday.
The median stock price will be determined by averaging Chironstock's high and low values each day, and throwing out theseven highest and seven lowest days. The average price on theremaining day will be the price used.
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