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Monday, November 3, 2014

LabCorp to purchase Covance for $6.1 bln, (NYSE: CVD), (NYSE: LH)

Laboratory Corp of America Holdings , a major provider of healthcare diagnostic services, said it would purchase Covance Inc for about $6.1 billion in cash and stock to expand into the contract clinical trial business.Covance's drug development outsourcing services help pharmaceutical companies cut costs by eliminating the need to maintain in-house laboratories.Covance shareholders will receive $75.76 in cash and 0.2686 LabCorp shares for each share held.The offer of $105.12 per share represents a premium of 32 percent to Covance's closing price on Friday.

Covance Inc. is a drug development services company providing a range of early-stage and late-stage product development services on a worldwide basis primarily to the pharmaceutical, biotechnology and medical device industries. Shares of CVD traded higher by 0.72% or $0.57/share to $79.90. In the past year, the shares have traded as low as $73.57 and as high as $106.50. On average, 431830 shares of CVD exchange hands on a given day and today's volume is recorded at 719668.

Laboratory Corporation of America Holdings is a clinical laboratory company in the United States. Shares of LH traded higher by 1.77% or $1.9/share to $109.29. In the past year, the shares have traded as low as $87.01 and as high as $109.47. On average, 569958 shares of LH exchange hands on a given day and today's volume is recorded at 901246.



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