Salix Pharmaceuticals first expressed interest in acquiring specialty drug company Santarus in June 2010, but Santarus officials found the initial offer inadequate, according to a new regulatory filing.
Raleigh-based Salix announced plans to acquire Santarus for $2.6 billion last month. Salix is paying $32 a share for the San Diego-based company.
According to the regulator filing, in a written letter to Santarus CEO Gerald Proehl in June 2010, Salix CEO Carolyn Logan expressed interest in acquiring the company for between $4.50 and $5 per share in cash.
Although Santarus officials turned down the offer, they retained Stifel, Nicolaus & Co. in February 2012 to explore possible mergers.
Talks about a possible merger with Salix didn’t resume again until June of this year, when Salix executives contacted Proehl again. A month later Salix made a written letter of interest to acquire Santarus for between $28 and $30 a share.
Logan later made a revised offer of $32 a share, or 36 percent above where the company’s share price closed the day prior to the deal being announced.
Santarus’ board of directors solicited offers from 15 other possible buyers, according to the regulatory filing. None submitted an offer for the company, including one that signed a confidentiality agreement.
Salix and Santarus expect their deal to close in the first quarter of next year.
Salix sells drugs to treat gastrointestinal ailments, an area that Santarus also focuses on. Combining the two businesses will give Salix a portfolio of 22 drugs with annual revenue of nearly $1.35 billion.
Salix shares closed Tuesday at $84.81, down 49 cents. The stock is up 16 percent since the Santarus deal was announced.
It is playing out like TSRX, IMO. Salix will likely buy them out next year, they lined up a loan today to help pay for SNTS. The loan is $1.2 billion.
Nice. I sold some at 32.17s and bought some at 31.94!
The cycle shall repeat until the deal closes at 32 which is what I expect that it will do .. I don't think a counter will emerge, but if it does more merrier if I hold the 31.94 shares
Loaded some at 31.94 and will load more if it falls below another 5 to 10 cents!
And then will plan to sell Friday / Monday optimism of some other offer. If nothing materializes, let the shares be gone at 32 takeover price!
this cycle will continue. I am buying some below 32 soon and sell on Friday pop on losers expecting a deal on Monday .. if my cost basis is way below 32, I may hold over a weekend - just in case a dream comes true! but regardless sell on Monday!
siamese - your reason for holding is valid, especially if short term vs. long term and deferring taxes by a year. congrats on your holding. but hope you're not holding for the sole reason of a counter higher offer which is waste of time IMO
ambulance chasers is the right term!
told you, its back down. it may go up. but eventually it will end at 32
if you had taken money last week and put into AMZN for the black friday ride and got out today, that would have been nice!
Bigger returns can be had by holding good comps for several years. Some have to get to 2014 tax year to save on taxes. You lose money by paying taxes for 2013 vs 2014. Once Jan hits we have an extra year to use the funds on huge gains. Ave for me is about $3.34.
if you do not become a part of the suit you do not participate and if you get no money you do not participate except in the cost to the company that you own, I no longer own the company as I sold all of my stock at 31.93 the day after the announcement was made and very happy to do so.
"They are usually the only ones to make money on these suits, I never participate."
They are class action suits - all shareholders participate.
Of course the lawyers sue only to force a settlement that includes payment of their fees. Shareholders will get absolutely no monetary benefit from the actions.
the explanation I would give you is irrationality #1, #2 option players buying stock and selling 30 calls and making money for the three weeks of december which is a lot better than MM funds. there are all sorts of strategies, #3 idiots that buy into long shots that this will go much higher and a white knight will come in, it happens occasionally but it is a rare bird consequently a long shot, but the are willing to lose a few cents and time value of their money on the hopes. Best advice I can offer is take your profit and find something else this is a bull market and you are losing opportunity.
PS. I was in SNTS for 3 weeks when they announced this deal and was tickled to make $9 per share I wish I could do that every 3 weeks and I had 16k shares. Move on and forget feeding the ambulance chasers. They are usually the only ones to make money on these suits, I never participate.
what you fail to take into account is what you could do with the money while you wait for a bigger payday that may never arrive, me I got into a stock that was up 20% the day after I got into it, now that means I would have had to have gotten 38.40 to break even on SNTS. It is not about the last penny it is about what you have at the end of the year. Money has time value and if you do not consider that then you are missing one leg as an investor. IMO BTW I am up from the first of the year a total of 50% after taking a loss of 20% the month of january on a portfolio in the 7 figures so I consider time value as a large part of my investments. I exit a stock anytime I do not figure it has the potential to gain 25% in the next 12 months.
The difference that you fail to note is the degree to which SNTS is undervalued at 32 dollars, a price that the stock would likely have achieved based upon its own fundamentals. The only comparison that comes to mind would be CIMA Labs and its acquisition by Cephalon after initially agreeing to a merger with another company. As others have attempted to point out to you, the sharp (and highly unusual) rise in the stock price of Salix, the acquiring entity, is the telling indicator here.