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

To: Skeeter Bug who wrote (26868)	12/11/1998 9:03:00 PM
From: Arthur Radley	Respond to of 32384

A good report for all of us that have money invested in biotechs: talks.com

To: Skeeter Bug who wrote (26868)	12/12/1998 7:59:00 AM
From: Exacctnt	Read Replies (3) \| Respond to of 32384

Skeeter, When I received the below market offer for MMG, the broker (Schwab) warned that it was a below market offer. I thought about why anyone would present such an offer. My conclusion centered around the idea that if a third party wanted to take a position in a company and did it through the open market, the buying would drive the stock price higher. Going through the open market and/or making a tender offer would jack up the price beyond what the third party is willing to pay. By making a below market offer, they most likely are gambling that if the stock price drops for whatever reason, they have an offer outstanding that might eventually be attractive without driving the price higher. Actually, it is quite smart of them and they have nothing to lose by making such an offer. They would like to take a position in the stock but don't want to pay a premium. They will take the position only if the stock price drops. You saw what happened to LGND and LGNDW when they turned south months ago. People will sell to them if the price drops to or below their offer. This kind of offer works when the stock in question gets hammered for no logical reason. If successful, they would get to take a percentage of ownership without paying a premium to do so. This of course is IMHO. Regards, Bob