Royal Pharma's hostile bid for Elan collapses
ROYALTY Pharma’s hostile bid for Irish drug company Elan has lapsed after its shareholders approved a share buyback proposal.
Royalty’s bid offer was conditional upon shareholders at Elan rejecting four resolutions at the company’s EGM today.
Shareholders threw out the other three proposals.
Royalty's latest bid offered $13 in cash per share and added a clause known as a contingent value right that could add a further $2.50 per share if blockbuster drug Tysabri hits certain sales milestones.
Dublin-based Elan put itself up for sale last week in a last-ditch attempt to fend off a hostile bid by Royalty Pharma.
Elan urged its shareholders not to tender into Royalty's current offer, worth a potential $8bn (€6bn), but said the US company would be able to participate in the formal sale process if it so wishes.