Horizon moves to oust Depomed's board as bid hots up
Dublin-based Horizon Pharma will try to replace Depomed's board in a special meeting of shareholders, the latest move by the drugmaker in its $1.96bn hostile takeover bid for Depomed.
On Wednesday, Depomed's board unanimously rejected Horizon's latest offer of $32.50 a share, with as much as a quarter of the bid in cash.
Horizon had previously offered $33 a share, all in stock.
"The board strongly believes that the revised proposal significantly undervalues Depomed, and does not reflect the value Depomed would contribute to the combined company or the value of the synergies from the transaction," Depomed said in a letter to Horizon.
The company said that without a "compelling proposal" it didn't plan to engage.
Horizon has called Depomed's current directors entrenched and unwilling to make a deal.
Under the proposal on Wednesday, it would replace all of Depomed's seven board members, and is taking steps to call the shareholder meeting.
"We firmly believe that Depomed shareholders have a right to consider the highly attractive proposal we have made,"
Horizon chief executive Timothy Walbert said in a statement announcing the proposed directors.
"We feel strongly that the board as currently constituted does not provide assurance that the interests of Depomed shareholders are being sufficiently taken into account." Horizon is pursuing Depomed to expand its line of treatments for pain and central nervous system conditions, and has already sweetened its bid once after the Newark, California-based drugmaker refused to engage in discussions. (Bloomberg)