Bloomberg News

PPD Made Confidentiality Deal With Potential Carlyle Rival

October 14, 2011

(Updates shares in sixth paragraph.)

Oct. 14 (Bloomberg) -- Pharmaceutical Product Development Inc., a clinical research firm, entered a confidentiality agreement with a potential rival to the proposed $3.9 billion takeover by Carlyle Group and Hellman & Friedman LLC.

The agreement, made during a go-shop period in which PPD was permitted to pursue other buyers through Nov. 1, hadn’t led to a proposal as of yesterday, the Wilmington, North Carolina- based company said today in a regulatory filing.

Private-equity firms Carlyle and Hellman & Friedman agreed earlier this month to pay $33.25 a share for PPD, falling short of the $34 to $35 the company had been seeking, according to a person with direct knowledge of the negotiations, who asked not to be named because the talks were private.

“The likelihood of a higher bid is low, but probably not as low as when the deal was originally announced given some improvement in the credit markets over the past two weeks,” Tim Evans, an analyst with Wells Fargo Securities LLC, wrote today in a research note.

Morgan Stanley, PPD’s financial adviser, had reached out to nine “strategic parties” and 13 “financial” ones as of yesterday, PPD said in the filing. The companies contacted included PPD competitors that had earlier expressed interest, PPD said.

PPD rose 1.8 percent to $33.05 at 4 p.m. New York time.

--With assistance from Beth Jinks and Cristina Alesci in New York. Editors: Andrew Pollack, Bruce Rule

To contact the reporter on this story: Meg Tirrell in New York at mtirrell@bloomberg.net

To contact the editor responsible for this story: Reg Gale at rgale5@bloomberg.net


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