U.S. likely to fight $3B Talecris sale - Triangle Business Journal:

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billion purchase of Research Triangle Park-based due to antitrust concerns. Australia-based CSL says that duringf a meeting with Federal Trade Commission officialszin Washington, D.C., Managing Director and CEO Dr. Brian McNamee was told that FTC staff has recommendede that the goverment move to block the Talecris which would createthe world’s largestr maker of therapies derived from blood The company expects the commissioners that govern the FTC to decid e at their meeting May 28 whether they will challengw the CSL-Talecris merger, spokeswoman Rachel David said. The FTC staff has not given CSL details on specific antitrust concernzs about the proposed purchase of David said.
“We really need to wait for a forma decisionbefore we’ll be able to David said. FTC spokesman Mitch Katz said the commissionj does not comment on pendingb transactions and that it does not even confirj whether there is an But he said companies are free to say what they Talecis officials were not immediately availablefor CSL, Talecris and market leader of Illinois control 83 percent of the U.S. market for blood-based drugs. But the FTC staffd apparently sees a need for more than two dominangt players on the domestic playinyfield – which is what woulsd be left if CSL bought Talecris. Talecrisw is one of the largest companiesw based inthe Raleigh-Durha m area.
The company, which posted 2008 sales exceeding $1.4 has more than 2,000 Triangle employees – about 600 at the RTP a few hundred more at a testingf lab in Raleighand 1,500 at a manufacturin g plant in Clayton. The deal with CSL calle for the Australian company topay $1.9 million in cash for all the sharew of privately held Talecris. CSL also would take on $1.2 billion in debt. Talecris Biotherapeutics was formed in when private equity companies Capital Management and Ampersand Ventures boughft what was then the plasma divisiojn of for morethan $300 million. Cerberuzs and Ampersand originally planned to exit their investmentg by bringing Talecris to thepubli markets.
Talecris filed for an initial publiv offeringin 2007. But and tighyt credit markets kept the IPOon ice, and the CSL deal was announcee in August. Almost immediately, analysts and other observers warnedof . More recently, warner that the federal review of the proposede purchase could extend until close to the Augustf deadline for closingthe deal. If the sale to CSL failes to go through, Talecris will have to chary a new course for thefuture – one that eithert will include an IPO or a sale to anotheer buyer.