Just 7.5pc of Elan Shareholders accept Royalty Pharma's takeover bid
ROYALTY Pharma’s bid for Irish drug company Elan had been accepted by just 7.5pc of Elan’s shareholders before the US company extended the deadline for its bid.
Royalty boss Pablo Legorreta is in Europe today as he tries to persuade Elan’s shareholders to accept its $6.4bn offer for the company.
The US company raised its hostile bid to $12.50 per share with an original deadline of yesterday for shareholders to make up their mind. However Pharma extended its offer until June 21.
Today 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.
On June 17, Elan is holding an extraordinary general meeting to ask shareholders to approve a number of transactions, including a near-$1bn investment in Theravance and a share buyback.
Royalty has urged Elan shareholders to vote against all the resolutions being presented at the EGM.
The extension to the Royalty acceptance deadline comes during a week where Elan secured a temporary High Court injunction to prevent Royalty from distributing to the Irish company's shareholders a proxy statement that it had filed with the US Securtities and Exchange Commission.