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The Spokesman-Review Newspaper
Spokane, Washington  Est. May 19, 1883

Business briefs: Actavis acquires Allergan for $66 billion

From Wire Reports

Actavis, which is buying Botox-maker Allergan for $66 billion in one of the biggest acquisitions announced so far this year, plans to stay committed to developing new products.

CEO Brent Saunders said Monday that the combined company will have more than two dozen products in late-stage clinical testing, which is usually the last and most expensive development phase, and it will work to support research.

Actavis and the company it outbid for Allergan, Valeant Pharmaceuticals, both have grown rapidly in recent years through multibillion-dollar acquisitions of other drugmakers. Allergan spent months fending off overtures from Valeant, in part because it thought the Canadian drugmaker would gut its research funding.

On Monday, Actavis announced an offer of about $219 in cash and stock for each Allergan share that has the support of both companies involved.

U.S. factory output up 0.2 percent in October

WASHINGTON – U.S. manufacturing output grew modestly in October, as autoworkers churned out fewer cars and trucks.

The Federal Reserve says output at manufacturing plants rose 0.2 percent in October. Gains came from the rising demand for machinery, plastics, clothing and furniture. Factory output has risen 3.4 percent over the past 12 months.

Total industrial production dipped 0.1 percent last month, due to a sharp decline in output from mines and utilities.

Manufacturing has steadily helped fuel economic growth for much of 2014, driven in large part by booming auto sales.

But in October, the automotive sector tapped the brakes for the third straight month. Auto production fell 1.2 percent in October, after declines of 1.9 percent in September and 7.2 percent in August.

Halliburton buys rival Baker Hughes

NEW YORK – In a deal that shows just how quickly falling prices can upend the energy industry, Halliburton is buying rival oilfield services company Baker Hughes for cash and stock worth $34.6 billion.

Global oil prices have tumbled 31 percent over the past 5 months to levels not seen in four years. That has forced the industry to cut costs by delaying or scaling back drilling – which means less work for Halliburton and Baker Hughes, companies that manage oil and gas fields for energy companies.