King Pharma's $1.6B offer wins over Alpharma

Alpharma has finally agreed to King Pharmaceuticals' $1.6 billion cash takeover offer, ending the drugmakers' months-long battle.

King has agreed to pay $37 per share for Alpharma (nyse: ALO - news - people ), representing a 54 percent premium to the Bridgewater, N.J.-based company's closing stock price on Aug. 21, the last trading day before King's initial $33-per-share bid.

After Alpharma Inc. rejected the original $1.4 billion offer, Bristol, Tenn.-based King Pharmaceuticals Inc. (nyse: KG - news - people ) raised its bid and said it would take the offer directly to shareholders.

Both companies' boards have unanimously approved the deal. King's tender offer, which had been scheduled to expire Nov. 21, is now extended to Dec. 19. As of last Friday, 73 percent of Alpharma shares had been tendered.

King expects the deal to close by the end of the year, and add to adjusted earnings in the second full year after closing.