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

To: B.D. who wrote (23044)	7/10/1998 11:28:00 AM
From: Phil Cressman	Respond to of 32384

I've never heard of a takeover which didn't provide for full coverage of outstanding warrents. Maybe you'd make more on the shares than on warrents but you'd still come out well ahead. The subject IMO would be very unlikely to ever be a concern as Lgnd would resist a takeover/buyout and the big Pharma's benefit from co-operative ventures with companies like LGND so why buy them. Mind you if the recent progress made by Ligand researchers isn't recognized by the market and someone like SBC figures out that it's a huge cash cow they could come to the table. Any buyout IMO would have to be a huge premium over todays market value, perhaps as much as double or triple and that's expensive.

To: B.D. who wrote (23044)	7/10/1998 11:53:00 AM
From: Flagrante Delictu	Respond to of 32384

B.D., If that merger were to occur before the warrant expiration, the warrant holders would be completely protected. The liability would belong to the acquirer, but the terms of the warrants would remain inviolate. Therefore, the expiration date & the $7.12 conversion price remain the same. If LGND is taken over for stock, You will get shares in the acquirer on the same basis as if you had converted your LGND shares into it. E.g. The acquirer pays share for share for LGND. That being so, your $7.12 will get a share in the acquirer to replace the LGND share.