DAK,
Of the companies you've listed, I only follow NBIX and ABSC and both companies have shareholder rights plans.
<<Also, if MEDI had bid $6 for BTRN when it was trading @ $3, wouldn't the shareholders decide weather to sell >>
The normal course of events would be for the acquiring company to discuss a buyout with the management of the "buy-ee", not to bid for the company on the open market. Without management approval, such a buyout would be difficult for most of these companies. I didn't follow all of the biotech buyouts this year, but I am not aware of a hostile buyout of a biotech. Look at the MRK buyout of SIBI -- even with a buyout at a 110% to market, a bunch of shareholders were quite upset and at least one lawsuit was filed. So, no, I think if someone had attempted a hostile takeover of BTRN at a 100% premium to market, they would have failed. Most people do not buy biotechs for a double -- the risk/reward ratio isn't right.
Can you imagine what the current market price of SIBI, AGPH, or SUGN would be in the current biotech market? I do -- I owned them all. But the new Excursion will have to wait, because MRK, WLA, and PNU haven't done diddly. (OK, MRK gave cash, but you get the idea). I wasn't happy with the buyouts, though at the time I understood the managements' positions.
TD |
