$123.52 is the present value of $125.00 at the time the deal closes. Can you make $1.48 on $123.52 elsewhere without tying up your money? That's what you have to ask yourself.
You ONXX investors are so self centered. AMGEN is up for more reasons than Onyx. Did you see the news about the cholesterol fighting antibody and the orphan drug status? Sheesh. Amgen is already an $80 billion company with $17 billion revenue. Something Onyx would not likely ever accomplish.
As long as you were willing to buy 48 shares! I guess that for some it is confusing to think that they can have purchased shares with current cost bases of 7¢ but never have been able to really buy a share for that cost. That's the magic of splits combined with simple algebra to keep track of their cost.
Minor correction: Amgen split five times for 48 fold.
You had me worried a minute about my adjusted cost bases.
I know people who have split adjusted cost bases below 10¢ per share.
I am not expecting any more splits.
Of course you would evade your taxes. You're a free market libertarian! And probably a man who made his money the old-fashioned way (by "working" his way up in his father-in-law's business) .
And besides, you (not surprisingly) missed the point. Wall Street encourages multinational corporations to keep their taxes down by not repatriating the money earned overseas. Then punishes them with low ratings when they have to borrow money to do business in North America. You don't see the irony? Sheesh, what a box of rocks.
At the Fitch rating and the reaction to it. I thought that everybody knew that Amgen was one of those companies that was not repatriating their earnings to evade taxes. Heck, they have been borrowing money to cover their US dividend and buy shares for years. All of a sudden, they borrow more to buy Onyx and it throws off their debt ratios and everybody is shocked. I'm sure everybody on Wall street knew why Amgen was lining up financing before the acquisition in the first place. I did.
As long as the scientists & other employees got accelerated option shareholders have nothing to complain about. You didn't do any work unless you were one.
"C'est la vie" said the old folks. It goes to show you never can tell.
Apologies to Chuck Berry.
Say see bone! (C'est si bon).
AMGN up almost 4 dollars on average volume. Don't really think an 80 billion market cap stock on the S&P 500 gets "pushed up" through manipulation.
I beg to differ. On June 28, Amgen closed at 98.66 before the leak. Onyx was at 86.82. At the close on July 2, after the news of the offer leaked and was fully figured into each companies' value, Amgen closed at 95.81 and Onyx closed at 135.58. After Onyx rejected Amgen's offer, Amgen's stock price started rising. It is my opinion still that the rise in Amgen's price today reflects in part the perception that Amgen is out of play with Onyx at this time.
Their stock is up $2.83 right now. Any inkling that Amgen would be paying over 10 billion in cash for Onyx to realize an extra 1 billion in revenue in 2016 would make Amgen stock go down again.
The rival drug was JNJs Procrit. It happened last decade. It has nothing to do with Omontys. JNJ was playing a similar game with Amgen. To learn more, read the book "Blood Feud".