| To: Biomaven who wrote (464) | 8/2/1999 10:35:00 AM | | From: LLCF | | | |
<I'm upset that they didn't structure this as a tax-free reorg.>
Me too, I'm paying regular income tax on this thing!!! Sucks. The other neuro stocks arent doing crap either... interesting.
DAK |
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| To: Biomaven who wrote (464) | 8/2/1999 10:39:00 AM | | From: scaram(o)uche | | | |
Strange company, Peter. I think they like the idea of advancing the science, secure on the bluffs over the beach in La Jolla, Merck sign out front. Comer has been shareholder-unfriendly to an extreme, but I hung in there assuming that the science would overcome his practice.
I can't complain. It's been a cash machine. The 5 to 7 game broke down about six months (?) ago, but.... SIBI's been paying the rent for ages. One just needs to focus on finding discounted, good science.
Hats off to the bench grunts at SIBI. You know damn well who you are.
Special appreciation to Drs. Vernier, Schneider, McDonald, Harpold and Lloyd. Class act. |
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| To: LLCF who wrote (467) | 8/2/1999 12:33:00 PM | | From: scaram(o)uche | | | |
>> What about another bid? <<
Well, one could wait and hope, or one could follow PNU last week and just switch (focus, if not money) to the next no-brainer.
There are lots of interesting plays.... the OSIP patent, SNAP (undervalued and a phase II with Merck for BPH), KDUS (will Merck really care about putting a small company out of business or about protracted litigation over peanuts?)...... |
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| To: LLCF who wrote (467) | 8/2/1999 1:11:00 PM | | From: RCMac | | | |
>>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 | | | |
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 | | | |
<<<<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 | | | |
>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 | | | |
>> 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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