Silicon Investor (SI) -- The First Internet Community

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 : Munch-a-Biotech Today -- Ignore unavailable to you. Want to Upgrade?

To: tommysdad who wrote (781)	12/28/1999 11:10:00 PM
From: Miljenko Zuanic	Respond to of 3158

<<I wasn't happy with the buyouts, though at the time I understood the managements' positions.>> I didn't then, and do not today. The answer which did cross my mind is weak and tired management's. Merge between bts (like NXTR-GILD or LKST-MLNM) is better way for many bts to survive and prosper.

To: tommysdad who wrote (781)	12/28/1999 11:28:00 PM
From: LLCF	Respond to of 3158

<The normal course of events would be for the acquiring company to discuss a buyout with the management of the "buy-ee", not to bid for the company on the open market. > Yes, this is true in any field. <Without management approval, such a buyout would be difficult for most of these companies. I didn't follow all of the biotech buyouts this year, but I am not aware of a hostile buyout of a biotech> Hostile bids have never been pretty in past merger waves either, however if shareholders are disgruntled enough [I certainly think biotechs fit the bill for a couple years up until this fall] many will sell their shares. <Look at the MRK buyout of SIBI -- even with a buyout at a 110% to market, a bunch of shareholders were quite upset and at least one lawsuit was filed. > Good case in point, it isn't pretty, but it was no real problem... look at the % tendered.... 110% premium >6 months ago is 50%-200% discount today in many names. <So, no, I think if someone had attempted a hostile takeover of BTRN at a 100% premium to market, they would have failed. > We agree to disagree, a large portion of the company turned over below $3 a share. In any case any buyout would probably be in excess of 100% more expensive today than earlier... I certainly agree with your assertion: <Can you imagine what the current market price of SIBI, AGPH, or SUGN would be in the current biotech market? I do -- I owned them all. > < Most people do not buy biotechs for a double -- the risk/reward ratio isn't right.> I agree... and this is an interesting point. Many of the stocks I've followed for the past 15 months [not exactly a 'bio-pro'] have probably had a substantial % of their shares put into new hands. They've gone from disgruntled "I've owned this pig for 3 years" types, to new owners expecting big things. The later [current owners] will be even less likely to want to sell! As an adjunct to the above I believe that often we have witnessed a delayed reaction in many of these stocks while investment decisions [to sell] made long ago continue to be carried out as the sector turns around... selling in INCY for instance as the group leaders flew away was interesting.... as was the blind tax selling in the hot biotech sector. Anyway, thanks, and let the munching begin at these new improved prices!! DAK