Who would you believe?
An unnamed source who 1) would face no consequences if their statement was false (unintentionally or intentionally) 2) is included in a story by Reuters, which previously incorrectly reported that Pfizer had pulled out of the bidding.
Or, Tony Coles, the CEO/Chairman of the company, who confirmed that there are ongoing talks with multiple parties on a broadcasted earnings call? Think about the liability and consequences he would face if the statement were not true... The man is smart and by all accounts a man of character.
This one is a no-brainer.
I am skeptical about the recent news reports from Reuters. They were the first to report that PFE had bowed out from the bidding, and this was later countered by a Bloomberg report that PFE was still in the bidding.
And Reuters was again the first to report that AMGN's latest bid of $130 was going to be accepted soon. I take these reports with a healthy amount of skepticism.
Well, this caught my attention too...I just hope that this was not just the matter of speech, but actually there are
at least one more "party" besides AMGN, so at least some "small" bidding war" will take place.
My take is that Tony is a pretty straight shooter. He knows that the market will react to the multiple parties statement. I don't think he would have said it if it was not absolutely true. I don't see him saying this as a negotiating tactic. To do so would invite shareholder lawsuits. Remember the Reuters source is not on the record, Tony is. IMHO
Coles is a brilliant man. And very circumspect. In past CC's, the analysts were always fishing around to see if Kyprolis was being used off-label (which it obviously was) and they would never bite. In fact, every time I listen to an Onyx CC, I am impressed by their entire management team. My take is that after the earnings report, everyone's cards are now on the table. I have so much confidence in this company and their management that I don't really care whether they get acquired or not. In fact, since some of my shares have been held for less than a year, I'd be happier with 120 three months from now than 130 tomorrow.