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Biotech / Medical : Ligand (LGND) Breakout! -- Ignore unavailable to you. Want to Upgrade?

To: John O'Neill who wrote (21365)	5/24/1998 10:22:00 PM
From: WTDEC	Respond to of 32384

JO, as I understand things, the LGND shares being paid up front are locked in. In other words, subject to legal requirements and a vote of SRGN shareholders, neither of which should be a problem IMO, each share of SRGN=.035674 LGND. SRGN trading has actually been mimicking LGND since the announcement. Closing on this part of the deal is likely in the third quarter, according to what I read somewhere, but can't find right now. Now for the .23 bonus (in cash or LGND stock at LGND's option) per SRGN share. This gets awarded only after final FDA approval and then LGND has six months to make the payment. I assumed FDA will approve six months after the 6/2 committee meeting which makes recommendations to the FDA and then LGND takes the full 6 months to make payment. To sum up, SRGN is LGND action until closing in Q3. Then some sort of right will probably trade. This right would reflect the markets discounted valuation of the .23 bonus considering both the likelihood of FDA final approval and the 6 month payment delay. No LGND action on the right since even if stock is used, it would be based on price then, not now. I hope this is clear. Let me know. Regards, Walter PS: I'm sending you a PM on another matter.