Nycomed closing in on Solvay's drugs unit?

Rumours that Nycomed is planning a bid to acquire Solvay’s pharmaceuticals business, and is busy raising the funds for a deal, have emerged again.

Reuters has reported that the Swiss firm is planning to draw on “buoyant junk bond markets” and fresh cash from its private-equity owners to fund a buyout of the Solvay unit, citing “people familiar with the matter”. The report says that Nycomed is working with Goldman Sachs, Credit Suisse, JPMorgan, Deutsche Bank and Bank of America Merrill Lynch, with some of them providing merger advice while others are working on financing.

The news agency claims that Nycomed will make a binding offer worth 4-5 billion euros for the Belgian firm’s drugs business next month, funded through equity, debt, and cash. Reuter’s source claims that the Zurich-headquartered company’s owners – Nordic Capital (which has a 41.6% stake), Credit Suisse's DLJ Merchant Banking (25.2%) Coller International Partners (9.4%) and Avista (6.4%) – will “probably provide more than one billion euros of fresh equity, roughly doubling their investments”.

No comment has been forthcoming from the companies and Solvay’s chief executive Christian Jourquin recently insisted that the firm will not be rushed in completing its strategic review. He added that the company may have more details on the future of pharmaceuticals unit in the fourth quarter.