ImClone To Pursue A Deal With Its Mystery Date
1 CommentBy Ed Silverman // September 29th, 2008 // 7:29 am
The overwrought drama continues. The biotech company, which last week rejected an unsolicited offer from Bristol-Myers Squibb to acquire it for $5.4 billion, or $62 per share, hopes by midnight on Wednesday to have a $70-a-share deal with its mystery suitor, subject to due diligence, but not financing.
In a statement, ImClone says that after the deadline, the unnamed big drugmaker “will either make a proposal, that is no longer subject to due diligence, or withdraw. As has been mutually agreed, if they withdraw and negotiations have thus been ended, the name of the company will be disclosed.”
ImClone previously declared the drugmaker would complete a review of its books by September 28 and, meanwhile, speculation is growing the unnamed company is Pfizer, which has declined to comment. One person involved in the discussions tells The Wall Street Journal that more than one drugmaker expressed interest, including Lilly. A few rumors have also mentioned Merck, but these were rumors.
In any event, most Wall Streeters continue to view Bristol as the likely buyer because it already owns nearly 17 percent of the biotech and holds US marketing rights for the Erbitux cancer treatment. Back stories here, here and here.
Scott
If Lilly did make an offer for $70/share, Bristol Myers Squibb should let them have it and thank Lilly for it! Imclone isn’t worth that price. Regardless, however, Icahn also has a significant stake in Amylin, and it would seem to me that a LLY acquisition of that company seems far more likely (and beneficial). But LLY doesn’t have that much cash, so it may be just a show to prevent anyone from trying to buy Lill!