ImClone Receives New $70-a-Share Bid - TheStreet

ImClone Receives New $70-a-Share Bid

ImClone says an unnamed bidder has topped Bristol-Myers' $60-a-share offer by $10 a share.
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ImClone Systems

(IMCL)

on Wednesday said it has received a $70-a-share bid from an unnamed pharmaceutical company.

The new bid is $10 a share higher than the one received in July from

Bristol-Myers Squibb

(BMY) - Get Report

, which ImClone has officially stamped as inadequate.

ImClone shares, which rallied 40% on the first bid in July, closed at $63.65 on Tuesday. Shares were up 7.4% to $68.36 shortly after the opening bell Wednesday.

The $70-a-share bid represents a 51% premium to ImClone's closing price the day before the Bristol bid.

The company said in a statement on Wednesday that its special committee has decided to let the new bidder conduct due diligence for a two-week period. Chairman Carl Icahn said ImClone has not determined, however, whether the new offer is adequate.

Icahn, an activist investor, affected the sale of MedImmune to

AstraZeneca

(AZN) - Get Report

for more than $15 billion, and a per-share price that represented a 53% premium to the closing price of MedImmune's shares the day prior.

ImClone's board

said in August that Bristol's offer of $60-a-share for the 83% of the company that it doesn't already own -- which valued ImClone at roughly $5.2 billion -- "substantially undervalued the company." ImClone did, however, form a committee "to study the matter and to retain advisors to advise it in determining the appropriate course of action."

The board said it had also been discussing separating ImClone's lead product, cancer drug Erbitux, from the its pipeline.