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   Biotech / MedicalSIBIA Neurosciences (SIBI)


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To: LLCF who wrote (467)8/2/1999 1:11:00 PM
From: RCMac
   of 579
 
>>What about another bid??<<

From the PR:
"SIBIA stockholders owning approximately 33 percent of SIBIA's outstanding shares have committed to support the transaction and have entered into voting and option agreements, and SIBIA has granted Merck an option to purchase other SIBIA shares under certain conditions."

These "lock-up" options, presumably at or below the $8.50/share price, are of course designed to make it more expensive for a competing bidder. (In general, the directors as a matter of corporate law would be required to give good faith consideration to a later bidder if one emerged, and can't wholly contract away their fiduciary obligation to the shareholders to consider a better deal, but they can agree to make it more expensive for the later bidder. The law is full of fine distinctions.)

That said, the absolute numbers ($87 million) are small enough that a competing bid would probably not be impossible, just unlikely.

--RCM

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To: LLCF who wrote (467)8/2/1999 1:12:00 PM
From: Biomaven
   of 579
 
What about another bid????

Well they do only have around 30% locked up. It's trading for close to the deal price, which may indicate some speculation about another offer or maybe just that it's a close-in all cash offer.

I don't think another offer is very likely, though. It's hard to value a biotech without their cooperation.

One could fantasize that the remaining 70% of shareholders might say "No" and cause them to sweeten the deal. My guess though is that the institutions will just take their sudden 60%+ gain and move on.

Peter

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To: scaram(o)uche who wrote (450)8/2/1999 1:33:00 PM
From: tommysdad
   of 579
 
<<<<Finally, a second person has noticed.>>

Based upon the recent stock price, that seems literally true. We need a third (if his name is Bill Gates).>>

OK, so it didn't have to be Mr. Gates.

This has happened to me three times now (AGPH, SUGN, now SIBI) just this year. I don't like it -- if I wanted more big pharma, I would have bought more big pharma. At least this is cash, and in an IRA so there are no short-term tax hits. Maybe I should just post all my buys on the Munch thread and be done with it.

I wonder if PFE will continue with the lawsuit now.

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To: Biomaven who wrote (470)8/2/1999 1:50:00 PM
From: John Metcalf
   of 579
 
>I don't think another offer is very likely, though. It's hard to value a biotech without their cooperation. <

Pfizer may be able to assign a value, now that they won't be able to litigate Sibia into oblivion. To PFE, SIBI would be worth litigation costs and possible future royalties (from assay subscribers, and maybe from PFE), plus cash, plus patents and other assets, plus products in development.

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To: tommysdad who wrote (471)8/2/1999 1:53:00 PM
From: scaram(o)uche
   of 579
 
>> I wonder if PFE will continue with the lawsuit now. <<

So will everyone else, when they come up to speed. The equally compelling question is "I wonder if MRK will continue with the lawsuit now."

Logical plays for decent returns are pretty apparent.

AGPH, SUGN and SIBI..... I was fine with AGPH. As I've thought about it, I'm more comfortable with SUGN now than "then". However, by any measure, the timing of the Lilly deal relative to this one is bizarre. Sorry, but this one is going to require some sort of secret decoder ring, and they didn't issue one to me.

So..... the AGPH, SUGN and SIBI club.....

Tommysdad, pants up today
Rick H.
who else?

I know that Miljenko overcame his long-standing reticense recently and finally purchased some SIBI. Did you own AGPH, MZ?

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To: Miljenko Zuanic who wrote (8)8/2/1999 2:12:00 PM
From: scaram(o)uche
   of 579
 
>> I will probably be able to attend AM tomorrow if nothing extraordinary develop at work. <<

Two years and not enough beers later, CHEERS!

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To: scaram(o)uche who wrote (473)8/2/1999 2:14:00 PM
From: Biomaven
   of 579
 
So..... the AGPH, SUGN and SIBI club.....

Tommysdad, pants up today
Rick H.
who else?


I had smallish amounts in all three, as well as something in NXTR and a smidge left in CNTO at the end.

Peter


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To: Biomaven who wrote (475)8/2/1999 2:20:00 PM
From: Muse
   of 579
 
I had a lot of SUGN (for me), which I more or less regretfully parted with, and a small amount of SIBI ... Somehow, I have a feeling that this isn't the last time this month either!

D. Pond

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To: Biomaven who wrote (475)8/2/1999 2:22:00 PM
From: scaram(o)uche
   of 579
 
Sorry, but if we made it the AGPH, CNTO, SUGN, SIBI and NXTR club, the membership would be limited to one individual.

Show off.

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To: scaram(o)uche who wrote (477)8/2/1999 2:27:00 PM
From: Pseudo Biologist
   of 579
 
Sure, but did he have Alza too?

PB
(who only had SUGN of the "club list" -g-)

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