Teva Pharmaceuticals on Thursday raised $2.75 billion in debt securities, as the world's largest generic drug company completed its $7.4b. merger with Ivax - the biggest-ever buyout by an Israeli company. "Our plans for integrating Teva and Ivax have already been put into motion. We have put in place processes that will monitor the execution of those plans and ensure that we maximize the potential value created by the merger of these two industry leaders," said Israel Makov, Teva's president and CEO. The merged company will continue to operate under the Teva brand with an employment base of 26,000 people spread across over 60 countries. "We expect the merged company to generate $8.9b.in annual sales in 2006 and have set a 12-month price target of $50," said Yisca Erez, an analyst at Clal Finance Batucha Investment Management To refinance short-term loans incurred in its purchase of Ivax, Teva announced several debt offerings totalling $2.75b. The sales include about $1.5b. of senior notes in two series that mature in 2016 and 2036, respectively, that were offered to institutional investors and individuals. The second sale consisted of $750 million of convertible senior debentures, due 2026, redeemable by Teva's finance subsidiary in five years. They also may be repurchased by Teva's finance subsidiary at the investors' option in five, 10 or 15 years. Finally, Teva sold about $500m. of convertible senior debentures, due 2026, which may be redeemed by Teva's finance subsidiary in two years and repurchased by Teva's finance subsidiary at investors' option in two, five, 10 or 15 years. "We were expecting an offering but the market was concerned about the ratio of straight and convertible bonds," said Richard Gussow, senior analyst at Excellence Nessuah. "With more than half of the offering in straight bonds, this is a positive development resulting in less dilution." Teva's shares, which fell at the start of the trading day on the Tel Aviv Stock Exchange regained 0.8%, closing at NIS 194.90. Under terms of the merger announced about six months ago, Ivax shareholders were given the choice to receive cash or stock in the deal. This week Ivax said that an "overwhelming majority" of shareholders elected to receive Teva stock and will receive 0.8471 of a Teva American Depositary Receipt for each Ivax share held. Teva said approximately 50.61% of the Ivax shares would be exchanged for Teva stock and 49.39% would be exchange for $26 cash per share. The final results of the elections are expected to be announced January 31. Earlier this week, the US Federal Trade Commission gave permission to proceed with the deal, the last hurdle for the two companies to close the transaction, but required Teva and IVAX to divest certain formulations of 11 generic drugs with respect to which they have a product overlap, representing approximately $15m. in aggregate annual sales.