By James McNair
Enquirer staff writer

Omnicare's hostile $30-a-share bid for NeighborCare was high enough to draw 46 percent of its rival's stock, prompting the Covington company Friday to keep the offer on the table for another 30 days.

NeighborCare, based in Baltimore, maintained its opposition to the tender offer, which began June 4. But many shareholders disregarded that advice and tendered 20.2 million shares.

As of the stock market close Friday, the $30 bid represented a 17 percent premium over NeighborCare's going share price of $25.64.

Apparently confident of attracting a majority of NeighborCare's stock, Omnicare extended its offer to 5 p.m., Aug. 31, without raising the bid.

"It sounds like they're extending it in the hope that it will look good over time to the shareholders who haven't tendered," said Martin Sikora, editor of Mergers & Acquisitions magazine. "Omnicare is very tenacious."

Omnicare has acquired or merged with more than 100 companies since 1988.

Before last week, Omnicare's interest had driven NeighborCare's share price to as high as $32.14, and analysts said it would take $35 or $40 to clinch the takeover. Ironically, a disappointing earnings report Tuesday from Omnicare itself helped send health care stocks plummeting, including that of NeighborCare, and the luster was restored to Omnicare's $30 bid.

"It's still not much of a premium, but by the same token, there's nobody stepping up to the plate and saying they'll outbid it," Sikora said.

Omnicare, with $3.5 billion in revenue in 2003, and the smaller NeighborCare both provide pharmaceuticals to nursing homes. Omnicare, which joined the Fortune 500 list this year, operates in 47 states and is the dominant company in the industry.

If completed, the takeover would boost Omnicare to nearly 1.3 million beds served. NeighborCare serves about 260,000 beds.

Jefferies & Co. analyst Frank Morgan said the merger "makes strategic and financial sense."

The results of Omnicare's tender offer were announced after business hours Friday. A NeighborCare spokesman could not be reached for comment.

Omnicare shares closed Friday at $28.27, up 6 cents. NeighborCare closed at $25.64, up $1.20.

E-mail jmcnair@enquirer.com.