Agouron Pharmaceuticals (AGPH) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : Agouron Pharmaceuticals (AGPH)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: John Metcalf who wrote (5138)	8/13/1998 2:53:00 PM
From: Biomaven	Read Replies (1) of 6136

The details of the tracking stock proposal are now available at www.freedgar.com (may also be at some of the other Edgar sites). Here's my summary after a very quick read-through: It's not exactly a spin-off - it's a distribution of the new oncology division stock to shareholders. The new division gets a $25m credit line which it can get its hands on by giving its own stock to the AGPH general company at the oncology division's own fair market value (average of 20 days trading 30 days after distribution). The general division also maintains the right to acquire the oncology division at 125% of the fair market value. Voting rights change as the relative values of the companies change. So AGPH general will end up owning a chunk of AGPH oncology stock directly because of the cash transfer. There aren't really going to be two stand-alone independent companies at all - more like one and a half. Lots of work for lawyers if anything ever goes wrong. I'll post later what I think the pro-forma earnings for the new AGPH general would have been last year. Peter

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next