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Elan Corporation, plc Message Board

  • gainorpain gainorpain Oct 31, 2003 12:34 AM Flag

    This makes no sense.

    Elan has over a billion in the bank. The lyons are due in dec for 500 million. Next big payment is not until June 2003. Supposedly drug delivery and hospital drugs are close to closing for 400-700 million. Also there is all the investments in Atrix, DOV, Acorda, Galen etc. Management was under no pressure to this financing now. So what gives? Something rotten is going on behind the veiled curtain or this is the biggest bone head move ever. Remember next year the value of Elan will rise as we approach the end the antegran MS trials. So why give away 25% for 5-6 dollars a share??

    I think KM has lost it.

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    • They're playing the favor bank and enabling some European Institutions to get in and buy size without driving up the share price. On face value, what you say is absolutely correct and does smell like old fish. However, they also faced some pressure by having to sell off assets at lower valuations (if their backs were against the wall). Now they can sell or not sell revenue generating assets at their leisure. Antegran may also work out as planned. If that were the case, they might have sold off more assets than they could afford to lose. There may also be some covenants and market liquidity concerns which preclude selling off some of their public stock assets.
      Perhaps they didn't like the LYONS bondholders owning such a big piece of the Company and preferred the new shareholders who understood their curent situation better. I think it all boils down to a relationship business.

    • To me, it makes sense. Here is why. Selling DD is not a good idea from the begining. Selling cash cow is not a good idea either. They will lower the rev they need for ongoing. I believe they want to retire all EPILs without not much affecting the revenue.

    • yes it makes no sense, they probably need the funds to pay sec fine and deal with upcoming lawsuits by shareholders when the truth comes out ,shareholders lose

    • In the past 2 years the only time you show up is when ELN gets hammered. Are you short????
      What is your motive???? Your post are always negative while trying to sound like a long.
      Shill, Basher, what are you????????

    • "Next big payment is not until June 2003."

      That must bug the hell out of you that you can't carp on it for the next 7-8 months and start one of your stupid T minus countdowns.

    • Perhaps they are not as optimistic about the near future as they formerly led us to believe. Why else would they do this now, if they truly believed there would be a substantial gain in share price in the months ahead, especially considering there was no immediate need for cash. A sweetheart deal like this (at a price below $5) after Elan has made it through all the roughest parts of their tribulations and with an SEC conclusion in the wings? Why? Perhaps there is bad news on Antegren? I don't think so (I hope not). Then why now? That's a great question. All the best trying to figure out this filthy and dirty market. Unless you're extremely well connected though, good luck. Take care.

      My opinion.

    • Next payment is June 2004.


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