NEW YORK: Merck & Co Inc is in talks to acquire Cubist Pharmaceuticals Inc for more than $7 billion in a deal that could be announced as early as next week, according to the New York Times.

Merck will likely pay roughly $100 a share for Cubist, valuing the company that makes drugs to fight superbugs, in the range of $7.5bn, the people said.

Merck could pay a 33 per cent premium for Cubist, the sources told the newspaper, but it was not clear if it would pay for Cubist shares with cash, stock or a combination of the two.

Lexington, Massachusetts-based Cubist is valued at about $5.7bn as of its Friday close of $74.36.

The antibiotic maker’s shares rose about 22.7pc to $91.25 on the Nasdaq in extended trade.

Published in Dawn December 7th , 2014