Bristol-Myers says Mead Johnson offer overbooked

AP News
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Posted: Dec 18, 2009 11:58 AM

Drugmaker Bristol-Myers Squibb Co. said Friday its offer to exchange shares of baby formula maker Mead Johnson Nutrition Co. for shares of its own stock was oversubscribed.

The company said it will accept for exchange about 269.3 million shares of Bristol-Myers common stock in exchange for the 170 million shares of Mead Johnson common stock.

The exchange rate for the offering was 0.6313 shares of Mead Johnson Nutrition Co. for each share of Bristol-Myers.

The companies expect to announce the final results of the exchange offer on Dec. 23.

Last month, Bristol-Myers said it would split off its Mead Johnson holdings to focus on its biopharmaceutical business. It owned about 83 percent of Mead's stock when it made the announcement.

Mead Johnson spun off from Bristol-Myers in 2008, and the formula maker went public in February. It makes children's liquid and powder formulas under the Enfamil, EnfaKid and Choco Milk brands.

Shares of Bristol-Myers Squibb fell 33 cents to $25.44 in midday trading.