Pfizer to buy Wyeth for $68 billion, cut (8000) jobs

[Pale Blue Dot]

Source: Yahoo Finance

NEW YORK (AP) -- Pfizer Inc. is buying rival drugmaker Wyeth in a $68 billion cash-and-stock deal that will increase its revenue by 50 percent, solidfy its No. 1 rank in the troubled industry and transform it from a pure pharmaceutical company into a broadly diversified health care giant.

At the same time, Pfizer announced cost cuts that include slashing more than 8,000 jobs.

The deal comes as Pfizer's profit takes a brutal hit from a $2.3 billion legal settlement over allegations it marketed certain products for indications they have not been approved. The New York-based company is also cutting 10 percent of its work force of 83,400, slashing its dividend, and reducing the number of manufacturing sites.

Early Monday, Pfizer, the maker of cholesterol treatment Lipitor, the world's top-selling drug, and impotence pill Viagra, said it will pay $50.19 per share under for Wyeth, valuing Madison, N.J.-based Wyeth at a 14.7 percent premium to the company's closing price of $43.74 Friday.

Both companies' boards of directors approved the deal but Wyeth shareholders must do so, antitrust regulators must review the deal and a consortium of banks lending the companies $22.5 billion must complete the financing.

Read more: http://finance.yahoo.com/news/Pfizer-to-buy-Wyeth-for-68-apf-14151387.html

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That's 36,000 job cuts announced today before 8:30 AM.

[Triana]

1. rediculous. ought to not be allowed. n/t

[Captain Hilts]

2. Mergers are subsidized by taxes because loans for them are written off as a 'business expense'. nt

[fasttense]

3. Mergers lead to monopolies, reduced competition and declining employment.

Republicons have allowed corporations to merge into monopolies because it makes big bucks for CEOs and makes for huge political contributions for Republicon candidates. But these monopolies eat up their competitors, lay off workers and increase the price of their product.

So CEOs can get big and fat while the competitive market place dies, workers lose jobs and consumers pay much more.

Corporate monopolies will kill this country if they get the chance. And Republicons have given them their best chance.

[OhioChick]

4. Too many people out of work....

K&R

[HiFructosePronSyrup]

5. Are the jobs being cut at Pfizer, Wyeth, or both?

[Raineyb]

10. I'd have to say both. Unless Pfizer finished cutting down the workforce they'd been

kicking to the curb over the last few years.

Regards

[Azlady]

6. .................:-(

[w4rma]

7. I call anti-trust. These monsters are getting too big. (nt)

[knitter4democracy]

8. Oh crap. When Pfizer bought Pharmacia, many went to Wyeth.

So, their jobs are getting cut again? This is terrible, terrible news for many, many families. Pfizer sucks.

[Raineyb]

9. Unbelieveable!

Pfizer has been cutting jobs for the last few years because they've been buying and growing then decided that it had too many manufacturing plants. So to remedy that they buy another company?

This needs to stop at this rate Pfizer and Johnson & Johnson will be the only game in town.

Actually, I know exactly why they're doing this. Pfizer has got squat coming down the pipe as far as R&D is concerned and needs to buy a company that does.

Good luck, those poor people will need it.

Regards

[GeorgeGist]

11. viva Viagra

[DavidDvorkin]

12. We have a German friend who works at Wyeth HQ in Muenster

He's been there for almost 20 years, I think. He's very worried about his job. He's heard that his department, if it survives at all, will be moved to Berlin. For him, even that would mean losing the job.