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  • somasetboulevard somasetboulevard Nov 1, 2003 12:46 PM Flag

    Will Savient Find Itself.........

    all dressed up with nowhere to go?

    It seems to some that the time that has elapsed between the announcement of talks (which presumably preceded the announcement by weeks, if not months) with TEVA and the publication of a bona-fide offer from TEVA is mighty long.

    Unfortunately, as others have pointed out in their posts, despite the best efforts of management, a company does not just continue its "operations as usual" during such a period. Part of "operations as usual" consists of working on long-term goals for the future prosperity of the Company, something that no amount of goading from management is going to elicit from employees as they brace for impending unemployment. Silently and gradually, employees have turned their attentions to what is more important in their lives, within the context of what they know - that they are likely to lose their jobs in the near future - just in time for the holidays. There have been no assurances made to employees in terms of the severance package they would receive, should the company be acquired. In a nutshell, a company cannot continue indefinitely with the perennial threat of an imminent takeover. It will, by and large, lose value by standing and perceiving itself as a target, ready to be picked off at the bidder's discretion.

    The most sensible thing that the Board of Directors could do is to tell TEVA to either tinkle or get off of the potty. And if TEVA should decide to dismount, there need to be real assurances provided to employees at all levels that the Company has a vision of itself as somthing more than a takeover target. If the deal is off, or likely to drag on much longer, the Board should construct a "poison pill" that will underscore Savient's committment to go it alone, and send Teva packing so it can get on with its business...a business that can fetch shareholders better than $10/sh if the existing products are watered, managed and positioned properly, and allowed to grow.

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    • I am really having a difficult time understanding how TEVA/SVNT can hold SVNT'stock hostage for a such an extended period of time. It's quite obvious that this is why the stock has not moved since the announcenent and will not until this has concluded. This while the rest of the market climbs with good earnings, GDP up and going into the EOYr rally. I think TEVA/SVNT at least owes us (stock holders, employees, the street, etc) a news release with some status with a milestone schedule of decision points, or announce this thing dead and over NOW!

      Once again, an owner of 3000 SVNT(BTGC) shrs a $16.25 p/shr.

    • What is the usual time for due-diligence in an all cash deal like this? I guess what I am really asking is does the current interval suggest that there is trouble in paradise, or is this just the expected timeframe for such ventures?