>>WASHINGTON (AP) -- Abgenix Inc. on Friday said it has been hit by a lawsuit from shareholders who consider the biopharmaceutical company's agreement to be acquired by larger rival Amgen Inc. "inadequate."
Abgenix, of Fremont, Calif., agreed last week to be acquired by Amgen, a biotechnology company based in Thousand Oaks, Calif., for $22.50 a share, or $2.2 billion.
The deal is expected to close by the end of March.
The complaint, which seeks class-action status, also accuses Abgenix's directors of violating their fiduciary obligations to shareholders in negotiating and approving the merger agreement, according to Abgenix's Securities and Exchange Commission filing.
The lawsuit, filed in the Superior Court of the State of California in Alameda County, "seeks various forms of relief, including injunctive relief against consummation of the proposed merger," the filing said.
Abgenix, which uses genetic engineering to create antibody treatments for inflammatory and autoimmune disorders and cancer, said it believes the lawsuit is "without merit and intends to vigorously defend the action."
In morning trading on the Nasdaq Stock Market, Abgenix shares were at $21.49, down 1 cent.
Amgen shares were at $81.09, unchanged.<<
I doubt the suit has much chance, and so does the market. ABGX is still trading a $21.48, the day's low.
Cheers, Tuck |
