Judith: Even if the market likes this deal, will IMNX trade above the $30 price? Is that a cap now on the price this stock will go before the deal is complete?
$30 is NOT a cap. However, IMNX's stock valuation going forward will be "collared," that is, determined (more or less) by AMGN's stock valuation. How so? Here's the basic formula:
IMNX stock price = 0.95 * ((0.44*AMGN current price) + $4.50)
0.95 = This allows for underwriter/etc. costs of ~5%
0.44 = The number of AMGN shares for every 1 of IMNX
$4.50 = Amount of cash to be tendered by AMGN for every 1 of IMNX.
So from this point until the agreement is sealed and delivered with a kiss IMNX will "float" in accordance with AMGN. If AMGN surges, so, too, should IMNX. If AMGN falls back, again, so too should IMNX. They're tied together at the hip.
By the way, allowing for AMGN's large float and relatively small volatility this further means we should see IMNX's usual intraday/interday volatility reduced by a "considerable" amount. There's very little room for the shorts to run mischief and, over the intermediate term, little room for upside mischief, too. It (AMGN shares) could be in a good range to begin some long term accumulation. All imho, of course.
Hope this helps!
Regards!
John~ |
