<I didn't read contract between ENMD and BMY, but if you have right of first refusal of something (who has second right, third,..and so on???, actually who needs first right to refuse), than there is option (under certain condition) to buy the same. >
I cannot comment on the meat of the subject, being weather Bristol "passed" vs ENMD not selling. HOWEVER, a right of first refusal is distinct from an option! If I have an option on something (a piece of land) I have the right to exercise that option under the terms of the contract for the price stated. Here's you $1, I'll take the land. Under a right of first refusal I would have the right to step in and buy the land for the same terms that you have agreed to sell it for, or pass only if you've agreed to sell it. Hence you are correct in assuming a right of first refusal has option like qualities, but here it is ENMD that decides to sell and dictates price at THEIR option, and that event forces Bristol to decide. It's hard to imagine that Bristol "passed" if ENMD never tried to sell, since Bristol's rights are contingent apon that event.
DAK
DAK |
