Cima Considers New Bid From Cephalon
Cima and aaiPharma announced in early August that they would merge; but they never issued merger proxies or set dates for shareholders to vote on the merger.
In early September, Cephalon made a $26-a-share cash offer for Cima, which the Eden Prairie, Minn.-based company rejected as inadequate.
Then Cephalon approached Cima again on Sept. 10, saying it was flexible in its desire and that it would be glad to discuss an offer that included a mixture of cash and stock. That was enough to sway Cima's directors to at least talk to Cephalon, which is based in West Chester, Pa."In its latest proposal, Cephalon indicated that it is flexible with its offer and strongly believes that it can negotiate a proposal that could result in a superior outcome for Cima's shareholders," said Steven B. Ratoff, Cima's chairman and interim chief executive, in a prepared statement. aaiPharma, based in Wilmington, N.C., was left saying a variation of the same thing it has said every time Cephalon has stepped into the picture during the last two months. "We view the merger of Cima and aaiPharma as providing significant strategic advantages for both companies which will create substantial shareholder value," said Dr. Philip S. Tabbiner, president and CEO of aaiPharma, in a prepared statement. "As we have stated before, we are committed to completing the transaction with Cima under the terms agreed upon." Those terms called for Cima shareholders to receive 1.3657 shares of stock in the new company for each Cima share. When Cephalon made its first offer, the $26 a share topped the value of the merger for Cima's shareholders by $1.39 a share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV