NEWS NEWS NEWS
Icahn Grp/Immulogic -2: Last Reported 14.75% Stake
Wednesday, January 12, 2000 06:05 PM
WASHINGTON (Dow Jones)--A group including investor Carl C. Icahn is pitching a deal to Immulogic Pharmaceutical Corp. (IMUL, news, msgs) designed to realize shareholder value and result in an Icahn affiliate owning a 40% to 45% stake in the company.
In a Dec. 14 letter, the group said its proposed transaction guarantees shareholders a minimum value of 25 cents a share, according to a filing Wednesday with the Securities and Exchange Commission.
Under the deal, an affiliate of Icahn Associates would own 40% to 45% of Immulogic's outstanding common shares. The remaining shareholders would receive one "contingent value right" for each Immulogic share which would guarantee the holder a minimum value of 25 cents a share by entitling the holder to an amount equal to the excess of 25 cents over the trading price of one share of Immulogic on June 30, 2001.
Individuals nominated by the Icahn group would comprise a majority of Immulogic's board and the group would lend the company about $30 million to acquire businesses and/or assets and become profitable.
The group last reported a 14.75% stake representing 3.01 million common shares of the Waltham, Mass., company.
-Humberto Sanchez; Dow Jones Newswires; 202-862-9251
Quote for referenced ticker symbols: IMUL
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