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AHP bidding for Pharmacia?
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December 10, 1999: 3:47 p.m. ET
American Home Products denies report it is wooing P&U in case Warner deal fails
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NEW YORK (CNNfn) - American Home Products denied a published report Friday that it has secretly approached Pharmacia & Upjohn Inc. about a possible merger deal.
The Financial Times reported that American Home had made a tentative approach to Pharmacia, and that the move reveals the first sign that AHP (AHP) thinks its proposed merger with Warner-Lambert (WLA) may be derailed by a hostile takeover bid from Pfizer (PFE).
The Financial Times also calculated that AHP's falling stock price means its offer values Warner-Lambert at $13 billion less than Pfizer's $72 billion offer.
American Home said it is committed to the Warner-Lambert deal.
"Regardless of rumors reported by the press, I can assure you that we are not and have not been in discussions either formally or informally with Pharmacia & Upjohn regarding an alternative possible business combination," American Home CEO John Stafford said.
Pharmacia & Upjohn spokesman Paul Fitzhenry would not comment on the report, saying the company does not respond to rumor and speculation.
Stocks in both companies rose Friday amid a broad market rally. Pharmacia stock gained 1-1/2 to 52-7/8 while American Home stock added 1-3/16 to 47-9/16.
Pfizer’s bid for Warner-Lambert came shortly after the latter unveiled its plan for a friendly merger with AHP.
If Pfizer does win out, AHP will have failed in three merger attempts in the space of two years.
AHP previously tried and failed to merge with SmithKline Beecham (SBH) and Monsanto (MTC).
P&U has a market value of $27 billion, while AHP is capitalized at $61 billion.
P&U's chief executive, Fred Hassan, was an AHP officer until 1997.
Both American Home and Pharmacia are based in New Jersey. Pfizer has headquarters in New York. 
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