Bristol-Myers to buy Amylin for about $5.3 billion

(Reuters) - Bristol-Myers Squibb Co has agreed to buy biotechnology company Amylin Pharmaceuticals Inc for about $5.3 billion, or $31 per share, in cash, giving Bristol-Myers a stake in the future of diabetes drugs Byetta and Bydureon.

Bristol-Myers said late on Friday it had also reached a follow-on deal with UK-based AstraZeneca Plc to collaborate on the development of AMYLIN (AMLN.NQ)s products once the buyout is completed. AstraZeneca will pay $3.4 billion in cash for these rights.

The boards of directors at Amylin, Bristol and AstraZeneca have approved the two transactions, the companies said.

Amylin began approaching potential buyers in April after rejecting a previous $3.5 billion takeover bid from Bristol-Myers and facing pressure from activist investor Carl Icahn.

In all, five pharmaceutical giants including AstraZeneca, Novartis AG and Sanofi SA were in the running for Amylin, sources familiar with the matter told Reuters this week.

Bristol-Myers said it will finance the acquisition from its existing cash resources and credit facilities. The transactions are expected to be dilutive to Bristol-Myers' adjusted earnings in 2012 and 2013 by about 3 cents.

Citi and Evercore are serving as financial advisers to Bristol-Myers Squibb, and Credit Suisse and Goldman Sachs & Co are serving as financial advisers to Amylin.

(Reporting by Chandni Doulatramani in Bangalore; Editing by Michele Gershberg and Daniel Magnowski)