Updated with stock prices.
SOUTH SAN FRANCISCO ( TheStreet) -- Onyx Pharmaceuticals (ONXX) is in play now that Amgen's (AMGN - Get Report) $10 billion offer has been rejected as too low, so how much will it cost Amgen or another suitor to acquire the company?
Amgen's initial offer of $120 per share in cash was a 38 percent premium to Onyx's closing stock price of $86.82 on Friday. Onyx rejected the offer Sunday, saying it "significantly undervalued" the company, but also said it would seek out competitive offers from interested suitors.
Onyx is worth about $110 per share as a standalone company today, but if a competitive bidding situation ensues, the company could be acquired for as much as $148 per share, Deutsche Bank analyst Robyn Karnauskas said in a research note published Sunday.Onyx shares opened Monday trading up 51% to $131. It's common for initial takeout offers to be raised over time. Sanofi (SNY - Get Report) first bid $69 per share for Genzyme. Following negotiations between the two companies, the final acquisition price bumped up to $74 per share plus a contingent value right tied to the performance of a Genzyme drug. Likewise, Roche (RHHBY) was forced to raise initial offer for Genentech before closing the deal. "In our opinion, this
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