LSR takeover by CEO gets board OK

By Antoine Clarke

- Last updated on GMT

Related tags: Stock market

Andrew Baker, the chairman and CEO of Life Sciences Research, an East Millstone, New Jersey, contract research organization, has obtained "a definitive agreement" to acquire the firm for $8.50 per share in cash.

The transaction was unanimously endorsed by LSR's board, and will be conducted by the end of 2009 via an entity controlled by Mr Baker, Lion Holdings, Inc.

It represents a premium of approximately 77 per cent over LSR's closing share price of $4.79 on March 3, 2009, the last trading day prior to the a announcement of Mr Baker's initial buyout proposal at $7.50 per share.

The deal requires the approval of shareholders, and is subject to confirmation that there is no company material adverse effect, however, this should be helped by the fact that Mr Baker already controls 17.5 per cent of LSR stock.

A special committee of LSR's independent directors looked at alternative strategic options for the company and unanimously recommended approval of the merger.

Gabor Balthazar, its chairman, said: "with the assistance of our independent financial advisor and legal counsel, the Special Committee spent a significant amount of time and effort exploring strategic alternatives, including a broad solicitation of third party proposals. We believe this transaction is in the best interests of Life Sciences Research and its stockholders​."

Mr Baker has been the Chairman and CEO of LSR since January 2002, with prior experience as Executive Chairman of the UK's Huntingdon Life Sciences Group plc in September 1998, where he led a a rescue plan for the company.

Related topics: Clinical Development

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