Norwegian cancer drug maker Algeta says it has agreed to be acquired by the German drug giant Bayer in a deal valued at about $2.9 billion.

Bayer made a preliminary offer for the company last month of about $2.4 billion, but later raised its bid. Algeta says Bayer, through a subsidiary, intends to launch a cash tender offer to acquire the outstanding stock of the company for 362 Norwegian kroner, or about $59.13, a share. The offer is a 37 per cent premium on Algeta’s closing price on November 25th, the day before the preliminary offer was announced.

Algeta said its board had unanimously recommended that shareholders accept the offer. Its largest shareholder, the venture capital firm HealthCap, and Algeta's directors have agreed to tender their shares. – (New York Times service)