This type of offering always create a buying opportunity. stock price drift below offering price and recovers soon after completion of offering.
Its like you selling your shares. does it add to the outstanding shares. No, just changing hands.
think about rationally, nothing has changed, except someone is taking part of their profit . stock always recovers for this type of offering. no new shares is being offered.
I guess you would have shorted Herbalife after Ackman came out with his 300 pages of nonsense.
available for who ever wants to short this as of today. it means the crocks covered yesterday and the panic sellers lost their shirt. you could not short this stock yesterday as no share was available.
I am long but what does he knows that all the shorts don't know. also I am not sure why they are splitting up this company? They could stay as one and just distribute the royalties instead of all the cost of this separation.
maybe, short got in long ago before all the FDA approval and maybe GSK is only interested in research part.
Salix Pharmaceuticals along with Senior Management of Santarus are seeking to acquire the remaining shares of Santarus that they do not already own for only $32 per share. A shareholder action stems from the buyout of Santarus and the unfair price and process. Indeed, the buyout price is considerably less than the inherent value of the company. Indeed, Santarus reported financial and operating results for the quarter and nine months ended September 30, 2013. Key financial results include: Total revenues of $98.8 million grew 81% compared with $54.7 million for the third quarter of 2012; and Net income of $30.3 million, or $0.38 diluted earnings per share (EPS), compared with $9.0 million, or $0.13 diluted EPS for the third quarter of 2012. Based upon these results, analysts now project the inherent value of the company closer to $40 per share. Indeed, based upon buyouts of comparable companies, the multiples offered here are but a fraction of what is paid in the industry, including total value to assets, total value to revenue and book value.
Further, the management of Santarus has included a fee of approx. $75 million dollars that another company would have to pay if they want to make a counter offer. This is meant to prevent any other bidder from coming in with a higher price. Indeed, managemet said that even if a higher bid was made they would vote against it. The following is a link to the merger agreemet that sets this forth:
I think the company worth north of $40. just look at earning and drug pipeline. Management didn't shop around for top $. My vote is a no, tell the board to go back to the table for better price.