Insiders Bailing on Warner Chilcott (WCRX)

Posted in pre-market 
November 20th, 2009

Warner Chilcott plc (NASDAQ: WCRX) priced a 20 million share secondary offering of common stock at $22.92 per share via Goldman Sachs, Morgan Stanley, Credit Suisse, and JPMorgan.This is not for the company’s benefit: The selling shareholders include funds affiliated with Bain Capital Partners, DLJ Merchant Banking, J.P. Morgan Partners, Thomas H. Lee Partners, and certain other institutional investors and members of the company’s senior management.  WCRX will not receive any proceeds from the sale of the shares but will pay the expenses of the offering pursuant to an existing agreement.

No one cares about rewarding private equity backers and the only shock here is that the discount was not a larger one…. Shares are down only 2% at $22.69 and on 337,000 shares as of 8:28 AM EST.  Average volume is 1.9 million shares, and the 52-week range is $9.24 to $24.45.

JON C. OGG

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