It will be interesting to see what happens if Amylin decides to reject all bid offers from the auction as being too low and issues a statement that the Board of Directors will not sell the company because of it. I expect the next move will then come from Icahn, who could encourage other company's to pursue a hostile take over of Amylin, promising his support to make it happen for a certain buyout price. Amylin's could checkmate Icahn's hostile takeover move by signing an OUS Partnership Agreement, which would discourage other company's from buying Amylin. Ultimately if Amylin does decide to go with an OUS partner, Icahn's recourse is to wait until 2013 and pursue a proxy fight to have changes made to Amylin's Board of Directors and eventually Amylin's Senior Managment. We should know shortly what's going to happen.
I would like to know what was said in the meeting between Icahn and DB. Where there minimun price and terms agreed upon. Was the price and terms put into the contracts with GS and CS. If they were put into the contracts and a buyer was found that met the conditions and Amylin refused, all hell would break lose. Amylin would have lawsuits from Icahn, the buyer, GS and CS, shareholders and every parasite law firm with their go away class action law suits. The next month should be interesting.
You really want to know what you asked in this email. Here is my suggestion: 1. Buy at least 30 millions share of amln (yes 30 million) in open market. 2. Then start the battle to replace the board with your people or threaten to take amy to court.
Then you may meet DB and he will discuss confidential material with you (may be).
will be shocked if it comes to that. With price so close to 5 billion now, how much more difficult would it be for a cash rich company like Merck to pony up 1 or 2 more billion? And actually, any of the big pharmas could easily buy Amylin for 6-7 billion even if they had to issue new stock, which would still be a very small portion of their outstanding shares.
I agree. What I'm worry about is the silent auction process Amylin implemented immediately following Icahn's lawsuit, which has kept everything surrounding Amylin's buout a complete secret. Seems to me Amylin could be making the auction a very public event, that would put a lot of pressure on the competing company's to put up or shut up and get out of the way but have chose not to do so. In reality, believe it or not Amylin is not obligated to release any information ever that an auction ever existed or what the bid offers were. The auction process could eventually end and Amylin is not obligated to issue any statement about it. The only time Amylin needs to acknowledge that an M&A action is underway, is if they receive a binding offer from another company. Right now the auction bidding does not fall under any SEC requirement that forces Amylin to provide public information about it.
If Merck has valued the Company at around 3 billion it will be extremely difficult for them to justify paying $7 billion.
What you SHOULD be wondering is what proportion of the buying pressure which has taken the share price to $28 was accounted for by the automatic accumulation of two million shares by the funds which track the Russell 3000.
And more importantly, what can we expect for Monday when that buying pressure is no longer there?