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Biotech / Medical : SIBIA Neurosciences (SIBI) -- Ignore unavailable to you. Want to Upgrade?

To: LLCF who wrote (467)	8/2/1999 12:33:00 PM
From: scaram(o)uche	Respond to of 579

>> 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?)......

To: LLCF who wrote (467)	8/2/1999 1:11:00 PM
From: RCMac	Respond to 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

To: LLCF who wrote (467)	8/2/1999 1:12:00 PM
From: Biomaven	Read Replies (1) \| Respond to 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