Pfizer Inc is delaying the sale of its infant-nutrition business to give it more time to explore whether a tax-free spin off will get more value for investors, Bloomberg reported.
The pharmaceutical major may send sale documents to suitors in November at the earliest, two months later than the potential buyers had anticipated.
The sale may fetch as much as $10.5 billion and attract in interest from companies including Danone (BN), Abbot Laboratories (ABT), and Nestle SA (NESN).
The drugmaker, is concerned that the sale may lead to an increased tax burden because it acquired the infant-nutrition unit less than three years ago, the reports said. Pfizer may still opt to sell.
The company’s advisors are gathering information on the units revenue and brands in Asia and other emerging markets, further slowing the process.
By starting an auction later, Pfizer may succeed in waiting out the turmoil now gripping equity and debt markets. Last month, companies raised the debt amount of leveraged loans since 2008 amid the worsening European soverign debt crisis and the first credit downgrade for the US.
By starting an auction later, Pfizer may succeed in waiting out the turmoil now gripping equity and debt markets. Last month, companies raised the least amount of leveraged loans since 2008 amid the worsening European sovereign debt crisis and the first credit downgrade for the U.S.
“We’re continuing to explore strategic options for our nutrition business,” Joan Campion, a Pfizer spokeswoman said. She also said, no decisions have been made regarding the evaluation.
“This process is ongoing. As we previously said, we don’t anticipate making any further announcements until sometime in 2012. We expect to complete any transaction that may result from this evaluation in 12 to up to 24 months.”
Pfizer Inc is an American multinational corporation based in New York with research headquarters in Connecticut in US.
The drug maker produces Lipitor, the neuropathic pain/fibromyalgia drug Lyrica, the oral antifungal medication diflucan, the antibiotic zithromax, Viagra for erectile dysfunction and the anti-inflammatory Celebrex.
