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Warner Chilcott top shareholders reducing holdings

NEW YORK (AP) -- Irish drugmaker Warner Chilcott PLC said Wednesday that its three largest shareholders plan to cut their stakes in the company by more than half.

Warner Chilcott said funds affiliated with Bain Capital Partners, JPMorgan Partners, and Thomas H. Lee Partners as well as Warner Chilcott management plan to sell a combined 42.9 million shares. The firms each own 25.5 million shares of Warner Chilcott, giving each a 10.2 percent stake in the company. Each plans to sell 14 million shares, reducing their stakes to 4.6 percent apiece.

Other selling stockholders include Chief Financial Officer Paul Herendeen, General Counsel and Secretary Izumi Hara, and Alvin Howard, who is in charge of regulatory affairs for the company. Herendeen is the largest of those shareholders and is selling about 309,000 million of the 1 million shares he currently owns.

Warner Chilcott will not get any proceeds from the sale of the shares. Citigroup is the sole underwriter for the offering.

The biggest shareholders in Warner Chilcott after the offering will include D.E. Shaw & Co. and Goldman Sachs Asset Management.

Last month Warner Chilcott said it had ceased discussions over a potential sale of the company and outlined plans to borrow $600 million to help fund a $1 billion dividend.

In August it also reported a 26 percent decline in second-quarter net income on an impairment charge and higher income tax provision. But the maker of osteoporosis treatment Actonel raised its full-year adjusted earnings outlook.

Shares of Warner Chilcott dropped $1.34, or 9.4 percent, to $12.85 in after-hours trading after rising 10 cents during regular trading. The shares have ranged between $12.90 and $23.28 in the last 12 months.