CEO Bids for Bradley Pharma

Bradley Pharmaceuticals(BDY Quote) rocketed 25% Tuesday after announcing receipt of an all-cash takeover bid from the company's founder and chief executive.

Daniel Glassman, who is looking to take the company private, offered $21.50 a share for the Fairfield, N.J., company. The offer represents a premium of nearly 17% over the stock's last closing price on May 25.

Glassman said One Equity Partners indicated it would be willing to provide the new cash equity and Credit Suisse Securities would underwrite the debt financing. "With the cooperation of the company, I expect to be in a position to execute definitive documents within a few weeks," he said in the proposal.

In a 13D filed today with the Securities and Exchange Commission, Glassman disclosed a beneficial ownership stake of 12.4% in the drugmaker.

Bradley's board of directors formed a special committee of three shareholder-elected independent directors, who will retain independent financial advisers and legal counsel to consider the proposal among other strategic alternatives.

Glassman, who would elect to remain CEO immediately following the transaction, expects the senior management team would continue as well.

The company's shares were up $4.56 at $23 in recent trading Tuesday.