Amgen Bets on Enbrel's Growth in Buying Immunex
Updated from 9:33 a.m. EST
Amgen (AMGN Quote) used a marathon two-hour conference call Monday morning, loaded with detailed projections and explanations, to explain its $16 billion purchase of Immunex (IMNX Quote) to a skeptical crowd of Wall Street analysts and investors.
The strategy seems to be working, at least for now. Shares of Amgen fell at the opening bell Monday but then reversed course, moving up $2.87, or 3.8%, to $58.17 a share in recent trading. Share of Immunex were up $2.67, or 11%, to $28.49 a share.
Amgen said it would pay about $30 a share for Immunex, a 17% premium over Immunex's Friday closing price of $25.62 a share. Under terms of the agreement, each share of Immunex common stock will be exchanged for 0.44 shares of Amgen common stock plus $4.50 in cash, or about 85% in stock and 15% in cash. ...
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