Novartis AG said it's offering $40 a share for the 57.8% it doesn't already own in Chiron. According to Novartis spokesman John Gilardi,

"Novartis believes this will put Chiron in a better position to resolve its key issues, especially its production issues, if it's a wholly-owned subsidiary.

Chiron received the go signal earlier this week from the US FDA to resume production of its flu vaccine, in time for production for the upcoming 2005-2006 flu season.

This is the third acquisition bid by Novartis in 2005. Earlier this year, Novartis acquired Hexal AG and Eon Labs.

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