This Day On The Street
Continue to site
ADVERTISEMENT
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

Icahn Dismisses Bristol's Higher ImClone Bid (Update2)

Updated from Sept. 23

ImClone (IMCL) Chairman Carl Icahn on late Tuesday dismissed Bristol-Myers Squibb's (BMY - Get Report) hostile tender offer for $62 a share as "misleading" and "absurd."

Bristol-Myers said late Monday that it will begin a tender offer for the 83% stake in of ImClone it doesn't already own -- at an increased price of $62 a share.

Tuesday afternoon, Icahn reiterated to Bristol-Myers Chairman James Cornelius that a large, unnamed pharmaceutical company has bid $70 a share, subject to due diligence until Sept. 28. He added that he could suggest less expensive ways for Bristol-Myers to gain publicity.

Bristol-Myers reasoned in its letter that the new $4.7 billion transaction would let ImClone shareholders realize immediate liquidity on their investment at a substantial premium, while avoiding the investment needed to develop ImClone's early stage clinical and preclinical compounds.

The higher offer is a 48% premium to ImClone's average trading price for the three months proceeding Bristol-Myers' $60-a-share bid made in early August.

Bristol-Myers sells ImClone's Erbitux cancer treatment in the U.S. The companies have openly disagreed about who has U.S. rights to IMC-11F8 and other, the next-generation version of Erbitux. IMC-11F8 is a fully humanized version of Erbitux, meaning it won't cause the severe allergic reactions that occur in some patients who take Erbitux. Theoretically, it should also be as effective.

Shares of Bristol-Myers closed down 36 cents, or 1.8%, to $20.26. ImClone closed up $4.11, or 6.9%, at $63.51.

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
Submit an article to us!
SYM TRADE IT LAST %CHG
BMY $64.66 0.00%
IMCL $5.50 0.00%
AAPL $128.95 0.00%
FB $78.99 0.00%
GOOG $537.90 0.00%

Markets

DOW 18,024.06 +183.54 1.03%
S&P 500 2,108.29 +22.78 1.09%
NASDAQ 5,005.3910 +63.9670 1.29%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs