J&J, Actelion Reportedly Reach Tentative Agreement On Price

(RTTNews) - Johnson & Johnson (JNJ) has tentatively agreed with Actelion Ltd. on a price to acquire the Swiss biotechnology company, Bloomberg reported citing people familiar with the matter, and talks are now focused on valuing what would be a new unit that would house the research and development assets.

Under the terms being discussed, Actelion's R&D would be spun off into a new company and its shareholders would be able to keep some stock in that business, said the people, who asked not to be identified because the information is private. What exactly would be separated into that unit, and how much ownership Actelion investors would be able to keep, are the points under discussion, the report said.

A deal could be finalized as soon as this month. Talks could be delayed or fall apart, and there's no guarantee that a transaction will be completed. Before the current round of negotiations started in late December, J&J had made an offer for Actelion valued at about $260 per share, or more than $28 billion, the report said.