Elan has set the price range of the Dutch Auction between $11.25 and $13, so the floor is now $11.25.
I am fairly sure Royal will come back with a better offer.
We now have the company in competition with the suitor for the shareholders favor. Of course there is the possibility Elan's refusal to engage Royal, the Dutch Auction, and the cash dividend are simply tactics to drive the price of the buyout higher.
Royal first approached Elan in August. I think KM is a lousy biotech CEO in many respects but I believe he knows how to play poker.
As far as I can see, the Dutch auction starts this Tues, right? So someone has to start saying (another big brand new buyer) something fast otherwise it gets real messy. Dutch auctions are dicey. I need to read up more about the specs on this one. I'm an ELN shr-holder. 'if' on Mon ELN trades above $12 1/2, I'll sell 1/2 my pos. Sure; would I prefer to sell at $13 or higher? To get there the large existing shr holders have to stand pat. Maybe they will; but I doubt it. It's possible you'll get a 'higher' price in the outright mkt, sidestepping the auction.