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Biotech / Medical : AVANT Immunotherapeutics Inc. (Nasdaq: AVAN)

AVAN 10.04

0.0%

Jun 12 9:30 AM EST

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To: LightPen who wrote (229)	5/21/1998 8:20:00 PM
From: kha vu	of 513

here it is: Taipan Hotline 18 May 1998 T Cell (TCEL) announced excellent news: TCEL is acquiring Virus Research Institute (VRII) for 14 million shares and 1.8 million warrants with a $6 strike. As a result of the merger, TCEL-VRII will have a $125 million market cap against $25 million in cash, a full immuno-therapeutic portfolio, and partnerships with 5 world class pharmaceutical giants. Professional arbitrageurs are shorting TCEL and buying VRII to lock in the premium; nevertheless, good news is good news. With the rich cash position and full pipeline, TCEL-VRII is directly comparable to leading biotechs in the development stage--companies that enjoy market caps between $200 and $300 million. TCEL can unlock the value in VRII's clinical vaccine program, while VRII's vaccine expertise should add value to TCEL's chlorestorol vaccine program. TCEL-VRII will be called Avant Pharmaceuticals. The new company franchise should draw in a new class of buyers. More importantly, the merger advisors on the deal, Lehman Brothers and H&Q, should initiate coverage of the new company. TCEL shareholders paid a $30 million premium for VRII. I believe that the merger will add another $100 million in market capitalization once the quiet period expires following the completion of the merger. This should move TCEL towards my 1998 target of $6. The current technical drop in the stock price is an excellent entry price.

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