Abject surrender.
I'm an absolute idiot," says David Ebsworth, chief executive of Oxford Glycosciences. "I'm destroying value and it would be better if we closed the company and put our money in the bank. That's what the market's telling me. Of course, I don't think that's true."...
What a difference a month makes.
Oxford GlycoSciences Board Recommends Celltech Offer
Friday April 11, 11:01 am ET
Edited Press Release
LONDON -(Dow Jones)- Oxford GlycoSciences (OGS) said Friday that while it continues to believe that the offer by Celltech does not reflect fully the intrinsic value of the business and cash of OGS, in the absence of any other options for realising value for shareholders in the near term, the OGS Board, which has been so advised by Goldman Sachs International, recommends that shareholders accept the offer by Celltech.
On 14 March 2003, the OGS Board stated that it was committed to exploring all potential options to maximise value for OGS shareholders. Since then, the company has approached a significant number of parties, including large and small biotechnology and pharmaceutical companies, as well as private equity investors, with a view to them making an offer for OGS.
Despite conducting detailed discussions with a number of interested parties, the OGS Board does not now expect any of these parties to progress their interest.
In light of the significant fall in the Cambridge Antibody Technology Group plc (CAT) share price, from 540 pence per share on 22 January 2003 (the day prior to announcement of the proposed merger with OGS) to 349.5 pence on 10 April 2003, CAT is not in a position to improve its original merger terms.
The OGS Board has also reviewed a potential break-up of the OGS business, concluding that it would not be possible to provide, with certainty, a higher value to shareholders than the current Celltech offer within a similar timeframe.
In providing its financial advice, Goldman Sachs International has taken into account the OGS Board's commercial assessments.
Commenting, David Ebsworth PhD, CEO of OGS said: "Due to the unfortunate decline of the CAT share price, the absence of any other credible bidders and the sale of significant blocks of shares to Celltech, we feel that the only alternative is for shareholders to accept the current offer by Celltech. This is the realistic option and we will endeavour to work with Celltech in the interests of our shareholders and employees. |
