+DJ Aurora Biosci Up 38%; Trading Sources Cite Merger Rumors
Story 3288 =DJ Aurora Biosci Up-2: Elan Cited As Possible Acquirer>ABSC
NEW YORK (Dow Jones)--Aurora Biosciences Corp. (ABSC) shares soared as much
as 38% Wednesday in a move some trading sources attributed to heightened
takeover rumors, possibly involving the Irish drug delivery and biotech
company Elan Corp. (ELN).
Takeover talk has surrounded Aurora for some time. The popular Web site
StockRumors.com, for instance, reported on rumors involving Elan on Sept. 7,
citing a bid price of 17 1/2.
Other companies speculated as being in merger talks with Aurora include
Tripos Inc. (TRPS) and PE Corp. (PEB), one analyst said.
Meanwhile BancBoston Robertson Stephens upgraded Aurora to strong buy from
buy, citing a boom in the demand for the company's services of providing
screening and validation for drug targets.
BancBoston analysts also said in a research note that Aurora shares were
undervalued in comparison with its peer group. They set a 12-month price
target of $13 for Aurora shares, and raised their 2000 earnings estimate to 13
cents a share from 9 cents.
Aurora shares recently were up 4, or 33.2%, to 65 1/16 on Nasdaq volume of
2.4 million, compared with average daily volume of 167,200. The shares traded
as high as 17 3/8 intraday, passing the 52-week high of 13 7/16 set Tuesday.
Company officials weren't immediately available for comment.
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