Carl Icahn To Jim Cornelius: ‘I Don’t Understand’
2 CommentsBy Ed Silverman // September 12th, 2008 // 7:28 am
The posturing and sniping that occurs during a hostile bid is so interesting, is it not? Yesterday, Bristol-Myers Squibb ceo Jim Cornelius yesterday fired off a letter to ImClone Systems chairman Carl Icahn (pictured left) to say his $60-a-share bid is firm and to chastise him for disclosing a mysterious suitor is lurking and may pay $70 a share.
Last night, Icahn released a response upbraiding Cornelius (see below). A few important details can help with the context - Bristol already owns 16 percent of ImClone; Bristol and ImClone jointly market the Erbitux cancer treatment, and ImClone disputes Bristol’s rights to a follow-up med.
September 11, 2008
Mr. James M. Cornelius
Chairman and Chief Executive Officer
Bristol-Myers Squibb Company
345 Park Avenue
New York, NY 10154
Dear Jim:
I received today’s letter from Bristol and don’t understand your point. On July 31, 2008, you sent us an unsolicited offer without trying to have a conversation first to discuss Bristol’s intentions. You now complain that we rejected the offer as inadequate without discussing the merits with you. You are aware of course that I tried to reach you to discuss our position before we made it public.
With regard to your assertion concerning rights to IMC-11F8 (which, if ultimately approved for sale, may have a significant competitive effect on ERBITUX), we disagree that Bristol’s rights are clear and do not waive any rights that we may have with regard thereto. With respect to a potential restructuring of ImClone, rest assured that we will act in what we consider the best interests of all our shareholders and not just Bristol.
Obviously, should you wish to make another offer which you believe we would not find inadequate, you are free to do so. Upon receipt of that offer, we will respond appropriately.
Sincerely,
Carl C. Icahn
Chairman of the Board
Matthew Holford
This is a really weird letter, from the perspective of linguistics analysis. Obviously, we don’t have Trim Bossy Quibbler’s (anagram), original letter, but it appears that Icahn has simply rebutted every point made by Cornelius.
“So, what?”, I hear you ask, and quite rightly. Well, if one wishes to invite a dialogue, and resolve misunderstandings, flat contradiction of what the other person is saying is not how it’s done - because that puts all the pressure on the other person to have another go at stating “the truth”. What one says is “no, that isn’t right - this is…” and then one negotiates from there. Ergo, Icahn doesn’t want to resolve anything, or has no negotiation skills.
Matt
Matthew Holford
Hmmm. I just read Cornelius’ opening letter to Icahn (overlooked that, initially), but I was right: Icahn just rebuts every point.
I don’t really give a shit what they’re bellyaching about, to be honest, but while this might be what passes for “professionalism” it is also known as “intransigence,” which rarely leads to any kind of resolution, at all.
Remind me, how did these halfwits ever get to the head of massive corporations? By being professional? That explains a great deal.
Matt