Merck & Co., Inc. today announced that, as of the close of business on August 13, 2010, the outstanding shares of the company's 6.00% Mandatory Convertible Preferred Stock (NYSE: MRK-PB) will mandatorily convert by their terms into a right to receive cash and shares of Merck common stock (NYSE: MRK). For each share of Preferred Stock, holders will receive $85.06 in cash ($10.50 x a Cash Conversion Rate of 8.1011) and 4.6719 shares of Merck common stock (0.5767 shares x a Share Conversion Rate of 8.1011).
The "Applicable Market Value" used to calculate the Cash Conversion Rate and the Share Conversion Rate was $30.86, equal to the sum of (a) $10.50, plus (b) $20.36 (the result obtained by multiplying $35.31, the average of the closing prices for the shares of Merck common stock over the 20 consecutive trading days ending on August 10, 2010, by 0.5767).
Additional information regarding the mandatory conversion of the Preferred Stock is set forth in the "Notice of Mandatory Conversion Date" available at http://www.merck.com/investors/home.html .
Merck has appointed Wells Fargo Shareowner Services as conversion agent for the Preferred Stock. Holders of the Preferred Stock with questions regarding the mandatory conversion of the Preferred Stock should contact Wells Fargo Shareowner Services at (800) 522-9114.
Holders of Preferred Stock who hold shares through a broker or bank should receive information regarding the mandatory conversion of their shares from the party holding their shares.