This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Cima Labs Jumps 12% on News of New Offer

Shares of Cima Labs (CIMA) jumped more than 12% Thursday morning after the company said it received an unsolicited letter from a pharmaceutical company indicating an interest "in pursuing a business combination."

Under the proposed deal with the pharmaceutical company, which Cima declined to name, Cima shareholders would receive value of around $30 per share. The transaction would consist of a combination of cash and common stock.

Cima said its board of directors concluded there is a likelihood that the proposal "would reasonably be expected to result in a superior proposal to the stock-for-stock merger contemplated with aaiPharma."

Cima said it has entered into "a confidentiality agreement with the interested pharmaceutical company and has entered into discussions with its representatives to explore the possibility of an alternative transaction to the aaiPharma merger."

The company added, "Cima does not currently intend to provide additional information about its discussions with this pharmaceutical company, with Cephalon or with any other party that may in the future indicate an interest in a business combination with Cima until any such discussions have led to a superior proposal that the Cima board of directors has concluded that ... it is prepared to accept."

Cephalon had made a bid for Cima in early September after Cima said in August it planned to merge with aaiPharma.

Cephalon originally made a cash offer of $26 per share for Cima, which the company rejected as inadequate; then Cephalon approached Cima again, saying it was flexible and that it would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.

The terms of the aaiPharma proposal called for Cima shareholders to receive 1.3657 shares of stock in the new company for each Cima share.

Cima's shares were up $3.56, or 12.8%, at $31.44 in early trading Thursday.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
AAPL $125.40 -0.77%
FB $82.95 -0.29%
GOOG $552.93 0.16%
TSLA $191.23 0.35%
YHOO $44.80 -0.33%


DOW 17,893.80 -82.51 -0.46%
S&P 500 2,081.42 -4.82 -0.23%
NASDAQ 4,933.7350 -13.7060 -0.28%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs