Elan wins blocking order on Royalty
ELAN has won an order from a US judge, temporarily blocking Royalty Pharma from its €4.9bn hostile takeover after Elan sued to halt what it called a "coercive" tender offer.
Royalty increased its cash offer two weeks ago but Elan, which has rejected Royalty's advances, has been granted a temporary restraining order, blocking Royalty from "consummating or closing" its offer.
Elan also won temporary relief from the High Court in Dublin on Monday but that lapsed yesterday when Royalty agreed not to send further documentation to shareholders until Ireland's takeover body has ruled on complaints made against its bid.
In its case presented to the Manhattan District Court, Elan said Royalty's disclosures in its increased bid were "materially inadequate" and denied Elan shareholders the opportunity to properly evaluate the offer.
The judge will decide on June 11 whether or not to grant a preliminary injunction.
Elan said that by reducing the acceptance bar for the bid to 50pc plus one share from 90pc, Royalty had raised the prospect of taking control of Elan but being restricted under law from delisting it. This could leave nearly half of Elan's shareholders as minority holders in a company controlled by Royalty Pharma but with no clear idea of what the US firm's plans were, Elan said. (Reuters)