News Summary: Actavis plans Warner Chilcott deal

The Associated Press

THE OFFER: Actavis Inc. said Monday that it has agreed to buy fellow drugmaker Warner Chilcott PLC in an all-stock deal valued at about $8.5 billion.

THE PARTICULARS: Warner Chilcott shareholders will receive 0.16 shares of the new company for each share they own. This equals $20.08 per share, and they would then own a 23 percent stake in the new company.

Actavis shareholders will receive one share of the new company for each share they own.

HEADQUARTERS: The combined company will be based in Ireland, which offers a lower tax rate that analyst say is a key to the deal's success.