Because nothing has been confirmed. Even if it was, it still wouldn't trade at $120. It would trade around $119. I wouldn't be a buyer on the pop without any confirmation, but if I was long I'd sell half my position in case it falls back. If it continues up, you still have money in the game. Too late to do that now though. I'm sure there will be some kind of confirmation either way Monday morning, but either way it will close above the Friday closing price because of the attention and possible interest that will come in from this 'news'.
Bcse ONXX has not accepted the offer. If they reject it, the price will drop back to the 90's. If they "consider" it, and solicit other bids, it could trade over 120. I doubt they will accept it outright.
Just my opinion, I think they should reject it, I think ONXX is a $150 stock in the next 12 months, and 120 now is not sufficient. If it is a 150 stock in a yr, the right offer is at least 135/sh.
Best question, if it opens Monday under 100, who will be buying? That question assumes no more news coming out this weekend, or Mon morn...
One interesting point raised by the article included below. The long-expected buyout many have been speculating may actually be coming...
Enjoy the weekend, guys!
Sources have indicated that if and when the matter of Amgen’s potential interest in Onyx emerges, then a slew of other potential buyers would enter the fray. The reason: Onyx is now in play and hence represents a possible acquisition target.
And in a world of Big Pharma, all sorts of possibilities could emerge. Sources have indicated that Swiss-based F. Hoffman-LaRoche AG; U.S.-based Eli Lilly & Co.; Germany’s Bayer AG; Japan’s Takeda Pharmaceutical Co. Ltd.; U.S.-based Bristol-Myers Squibb; U.S. based Baxter International., and Paris-based Sanofi could be among the interested parties.