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

Eli Lilly Commences Tender Offer for ImClone

Eli Lilly (LLY - Get Report) said Tuesday that it has commenced a tender offer for all outstanding shares of ImClone Systems (IMCL) at $70 a share.

Lilly announced last week that it would buy ImClone for about $6.5 billion, not subject to any financing conditions. The price represents a premium of 51% to ImClone's closing stock price of July 30, the day before Bristol-Myers Squibb's (BMY) offer was made public.

ImClone's board unanimously approved Lilly's proposal and recommended shareholders tender their shares in the offer. Unless extended, the tender and any withdrawal rights to which ImClone's shareholders might be entitled expire at midnight EST Nov. 20.

When the transaction is complete, ImClone will become a wholly owned subsidiary of Lilly. ImClone is best known for cancer drug Erbitux, which is currently approved for colon cancer and head and neck cancer in the U.S. It has a pipeline of five cancer drugs in early- and mid-stage clinical trials.

Bristol-Myers, which previously bid $62 a share for the cancer drug company, stands to gain about $1 billion for its roughly 14.4 million shares, or 16.6% of ImClone, through Lilly's acquisition.

ImClone shares closed at $67 on Monday. Eli Lilly closed at $35.86.

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
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!
SYM TRADE IT LAST %CHG
IMCL $3.80 26.67%
LLY $71.18 0.42%
AAPL $130.35 -1.70%
FB $80.74 -1.40%
GOOG $553.67 -0.31%

Markets

DOW 18,110.14 +72.17 0.40%
S&P 500 2,114.77 +5.85 0.28%
NASDAQ 5,055.4220 -4.8240 -0.10%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs