ALCO HEALTH SERVICES HAVING DISCUSSIONS WITH UNDISCLOSED ACQUISITION BIDDERS

Executive Summary

Alco Health Services is remaining on the auction block following its aborted merger attempt with McKesson in October. The wholesaler announced Nov. 11 that it had "received late yesterday bids for the acquisition of the company." A special committee of the Alco Health Services board of directors, which is evaluating acquisition offers, has "authorized the company's counsel and financial advisor's to continue analysis of the proposals and to commence discussions with the bidders," the release notes. Alco did not identify the bidders or disclose the terms under discussion. Also said that the bids received on Nov. 10 "had been solicited by the company." The wholesaler had reported, after the FTC blocked the proposed merger with McKesson, that it was continuing to "explore its options" and that it had retained Drexel Burnham Lambert to "explore alternative plans for maximizing shareholder value, including a sale or merger." Prior to McKesson's $ 30 a share bid for Alco Health Services in July, a management-led buyout group had proposed a $ 26 a share bid for the company.