Sunday April 5, 2020

Elan shareholders risk losing $2bn if Royalty walks

Elan shareholders risk losing $2 billion by listening to the company’s board and rejecting Royalty Pharma’s takeover bid.

12th June, 2013
Elan shareholders vote next week on whether to endorse the sale to Royalty Pharma or back Elan chief executive Kelly Martin’s strategy of buying drug rights as an independent company.

Elan shareholders risk losing $2 billion by listening to the company’s board and rejecting Royalty Pharma’s takeover bid.

While Royalty Pharma boosted its unsolicited offer to as much as $15.50 a share this month, at least five analysts covering Dublin-based Elan see the stock falling if that bid disappears, according to data compiled by Bloomberg. UBS AG estimates a 28 per cent plunge to $9.70, which would wipe out $2 billion of market value.

Shareholders vote...

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