Monday 23 October 2017

Royalty boss refuses to rule out job cuts if Elan bid is successful

Colm Kelpie

Colm Kelpie

ROYALTY Pharma boss Pablo Legorreta has not ruled out job cuts at Elan if Royalty's $6.4bn (€4.8bn) take-over bid is successful.

In an interview with the Irish Independent, Mr Legorreta said his company's offer was being increased from the already revised figure of $12.50 to $13 per share, adding that the new offer would "get the deal done".

Elan has about 50 staff in its Irish head office in Dublin.

"We need to go and evaluate and see how many people are doing what jobs and then we can decide," Mr Legorreta said.

"There might be some job cuts. I don't know if it's five or not, I don't know. I think it would be irresponsible of me to make that comment now.

"Why should we create expectations that are not founded on us understanding the situation. When we understand the situation we can be much more precise."

Mr Legorreta was in Ireland in a bid to persuade Elan shareholders to accept its multi-billion dollar offer for the Irish drug company. Yesterday the company announced it was increasing its offer to $13.00 per share in cash plus a contingent value right worth up to $2.50 per share.

"We want to close this shortly after the egm. It's better for investors to know where we are price wise earlier so they can introduce that into their thought process and make a more informed decision," Mr Legorreta said.

Asked if he believed the latest offer would make a difference, he said: "I think it will get the deal done."

The founder and chief executive of the New York-based company said there was no need for the increasingly bitter relations that have developed during the hostile bid. "There is no need for it to be this way."

A spokesman for Elan told the Irish Independent that the board has a duty and is open to looking at all offers. Elan will hold an egm on June 17.

Irish Independent

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