shares rose after Ramius Value and Opportunity Advisors, a subsidiary of Ramius, sent a letter to the board of Cypress offering to acquire all of the outstanding shares of the company that it does not already own for $4 per share in cash. Ramius currently owns 9.9% of the outstanding common stock of Cypress, making it one of the company's largest shareholders.
"The Cypress board needs to realize that a management team that continues to destroy shareholder value by making increasingly risky investments with shareholder money is not a management team to follow blindly," Ramius Partner managing director Jeffrey Smith said in a statement. "The correct conclusion at this juncture is to stop, hire a reputable banker, and maximize value for all shareholders."
Ramius said that in addition to the all-cash offer, it would be willing to consider an acquisition structure that would allow management to continue the development of the recently acquired BL-1020 anti-psychotic drug if they are able to fund the required financing for the Phase IIb trial themselves or from a third party financing source.
Shares of Cypress Bioscience jumped by $1.03, or 41.2%, to $3.53 in the premarket session. The average daily share volume for is 1.8 million.
shares jumped by 26 cents, or 10%, to $2.87 in the premarket session after the company said its tests show that its invisibleSHIELD help prevent loss of signal strength due to
. The average daily share volume for Zagg is 218,000.
shares trading in New York surged by $4.67 cents, or 33.7%, to $18.54 in the premarket session after the U.K. manufacturing company said it has received a cash bid from Canadian private-equity firm Onex Corp. that values the company at €2.86 billion ($4.38 billion). The average daily share volume for Tomkins is 115,000.
-- Written by Robert Holmes in Boston
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