What makes it worse is the FTC is playing along with thinly-disguised plot to shaft eqracer.
At least one more extension for sure.
The offer will either wrap up by 5/21 or get delayed for many more months.
The FTC needs to make sure having the best BCL-2 inhibitor and BTK inhibitor together in one house is not anti-competitive.
Remember that even if those are the final figures for the three elections, the amounts distributed will still be subjected to proration.
"ABBV has a drug in clinical trial..."
Now in Phase III trial after excellent results in earlier trials. Considered to be the next outstanding targeted therapy for CLL etc.
"It doesn't make sense that the HSR/antitrust hurdle would be difficult to jump.."
Take a look at ABBV pipeline.
It will be the 1o day average leading up to whenever the tender closes (quite possibly beyond 5/1).
With the extension you stil have time to make an election. ABBV has to give you at least close to what you ask for. If you have a preference you are far better off letting ABBV know.
"And what happens if you don't call in and do nothing...."
You will eventually get whatever ABBV decides to give you. They will let us know after the tender closes.
While the default cash/stock mix is unknown, it will almost certainly NOT be the same as the mixed option as amrameven believes.
"excellent work grey."
indeed. To find a puff piece from over a year ago that has already been proven wrong and then cut-and-paste THREE times shows great manual dexterity.
If you take stock, at least you have the choice when to sell it off Taking cash now locks you into the immediate capital gains and extra taxes.
Remember if you elect the mixed consideration you could end up with a lot more cash than you want. You could also get some cash if you elect "all stock" but it would be much less than than if selecting another option.
Yes, not all shareholders will receive the same cash/stock mix.
If you request "all stock" and enough other shareholders request "all cash" or don't make a choice, then you will get all stock and the others will get at least some cash.
Has no bearing on the proration that may be required which would force some shareholders to not receive the merger consideration they elected.
Is there still some disagreement/confusion about this proration? I took the lack of responses from the previous hostile crowd as a sign that they now understand. If anybody has any questions I'll be happy to help.
I have a good idea.
The deal is set so that, in aggregate, ABBV pays 58.3% of the $21 billion ($261.25/share) in cash and 41.7% in stock. Rather than just force all shareholders to receive this ratio of cash to stock, they give them the option to elect all-stock, all-cash, or that magic ratio.
But just as with any election - what you select is not neccesarily what you get. ABBV will honor all elections as long as they can make the total distribution match that 58/42 split. when you choose all stock, or all cash, you wil get that ONLY if enough of the other shareholders elected the opposite, or didn't make any election at all.
So, if you want all stock, select all stock, but just keep in mind that you may be forced to receive some cash (though less, probably much less, than 41.7%).
The gobbledygook stuff to read is the "proration" part.
"Do you know if the stock portion of the tender will be a tax-free distribution?"
As monsignor writes it will indeed be "tax-deferred" (ie taxable only when you sell your new ABBV shares). The cash portion will be taxable - how much you need to report for the current year depends on if your cost basis high enough that your gain is smaller than the cash portion of the payment.
Search for "boot" and merger, taxable.... for an explanation.
"This should clear up the BS-"
Agreed. Those that don't understand proration will be more convinced they are right.
The rest of us that read on will know the election "...in the case of elections of the all-cash consideration or the all-stock consideration, to the proration procedures described in the prospectus/offer to exchange."
"I am sure pcyc has its own Lawyers working it for the pcyc stock holders"
I certainly hope the lawyers paid by PCYC are working for PCYC and not the shareholders!
In any event, that has nothing to do with the situation we were discussing. Read any of 1) the merger agreement, 2) the press release announcing the deal, or 3) the Offer to Purchase to be published next week and you will see that you are looking more foolish each time you post.
"A9 I have to second that you dont know what your talking about"
Your just doing that to cheer me up? (see my answer to twin)
No one is denying that shareholders may elect the distribution they prefer. The final merger consideration, however, must be 41.7% stock and 58.3% cash. If ABBV can accomadate your election after taking into consideration all other requets then they will. Barring that unlikely event, shareholders will receive a prorated distribution of cash and stock.
Wait a few days and the Offer to Purchase will spell it all out for you.
Amraven - try the search function in your browser if you have found the merger agreement.
"Where does anything point to ABBV "ignoring" shareholder request?"
The merger agreement.
The payment must be 58% cash and 42% stock no matter what shareholders request. If a shareholders selection is too popular (eg if most people want stock) then you will be forced to take cash as well so that the 58/42 split is preserved.