This Day On The Street
Continue to site
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

Medicis Takes Firm Line

The battle for cosmetic drug-and-device supremacy got uglier Tuesday when Medicis (MRX) told the board of Inamed (IMDC) to formally reject another company's competing takeover bid or face the monetary consequences.

Medicis proposed a takeover of Inamed in March, but last week Allergan (AGN - Get Report) made a bid that Inamed's board said it would consider because it appears to be superior.

Allergan is offering $84 in cash or 0.8498 shares for each share of Inamed. Medicis has offered $30 in cash plus 1.4205 shares of its stock for each share of Inamed. On the basis of Monday's closing price of Medicis, the offer is worth about $74.85 a share.

Medicis' stock price was aided when yet another cosmetic products company, Mentor (MNT), made an unsolicited takeover bid worth $2.2 billion. Medicis' board rejected the stock-swap offer as inadequate.

Medicis has said for several days that its offer is better in the long run, and the company was more emphatic Tuesday, warning board members of Inamed that they must reject Allergan's offer by Dec. 6. Otherwise, Medicis has the right to cancel its offer and receive a $90 million termination fee, according to the terms of their agreement.

Even though Inamed's board hasn't formally responded to Allergan's bid, Allergan on Monday started its exchange offer for Inamed's shares. Allergan said the companies have signed a confidentiality agreement and will be sharing nonpublic financial information.

The Allergan exchange offer expires Dec. 20, one day after Medicis shareholders are scheduled to vote on their company's proposed takeover of Inamed. The Federal Trade Commission is expected to rule on the Medicis-Inamed proposal by Dec. 14.

By midmorning, shares of Medicis were up 16 cents to $31.73, while Inamed was off 26 cents to $83.07. Allergan lost 57 cents to $99.03, and Mentor's stock slipped 28 cents to $51.07.

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
Only $9.95
14-Days Free
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
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
MRX $0.00 0.00%
IMDC $0.01 6.18%
AGN $280.48 2.16%
AAPL $93.99 0.31%
FB $102.01 0.10%


Chart of I:DJI
DOW 15,973.84 +313.66 2.00%
S&P 500 1,864.78 +35.70 1.95%
NASDAQ 4,337.5120 +70.6750 1.66%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs