Will AMGN Make an All Cash Offer Only or Include a Contingency Value Rights (CVR) stub as well?
For all of you traders expecting a $130 all cash offer beware AMGN may include a CVR to sweeten the deal for ONXX senior mgmt but will shareholders be happy with a CVR?
Many pharma acquisitions include CVR's in the total deal price and disappoint shareholders who thought they would actually get more than what was rumored.
copied from an older NYT article: " It’s a neat way to close a gap in expectations. But investors mostly don’t like contingent rights. Their specialized nature and limited shelf life mean they tend to be illiquid. And the inherent uncertainty tends to mean they trade at a discount, even to an objective estimate of their fair value."
Do a google search for new york times and the article titled, "Contingent Rights Shouldn’t Catch On"