elan shares

dharn

Any elan shareholders out there, whats your opinion on the share buyback, I have a small amount but selling them at the offer amount would incur a loss for me, should I sell or hold on ?

dharn

Anyone ?

Dubh Geannain

Some thought's here:
http://www.thepropertypin.com/viewtopic.php?f=15&t=58773

I'm sitting tight. I've a feeling they're going to be acquired in the near future. At what price? I don't know. But I'm thinking that it'll be higher than than the price point will be with the buy back. That's my guess. They recently snubbed an approach for an acquisition at $11.

I don't know your situation though. If you don't have any thoughts on the future direction of the stock it might be advisable to bail out, take the loss on the chin and be glad that they've come back to the price that they have from where they were.

Dubh Geannain

Another offer for Elan. This time for $12.

http://www.ise.ie/app/announcementDetails.aspx?ID=11550293

Be interesting to see what the price is for the share buy back.

dharn

Dubh Geannain wrote: »

Another offer for Elan. This time for $12.

http://www.ise.ie/app/announcementDetails.aspx?ID=11550293

Be interesting to see what the price is for the share buy back.

If we did not respond to the dutch auction, does not mean we are stuck with the market price wherever that settles at

Dubh Geannain

dharn wrote: »

If we did not respond to the dutch auction, does not mean we are stuck with the market price wherever that settles at

I'm not sure if you're asking a question there or not.

My reading of the offer is this:
The price being offered for Elan depends on what price they buy back the shares for. The higher the buy-back price the less the takeover offer will be. This makes sense as Elan's cash reserve will be depleted more the closer to $13 that they pay.

Of course that all depends on enough shares being tender for the buy back by the elan shareholders. I think they'll get enough as I'd say there's enough investor fatigue at this stage.

The next issue is will Elan accept an offer at this stage. I think they're shaping to sell but not to Royalty Pharma and are hoping for a better price. Today was the deadline for the shareholders to tender. I ended up tendering some of my holding for €12.50 as I've decided I need the money elsewhere. I hadn't originally planned on doing that but at that price I've a 70% gain. I'd be surprised if I get taken up on it though but will let you know. I'm holding onto the rest of my shares indefinately.

dharn

Dubh Geannain wrote: »

I'm not sure if you're asking a question there or not.

My reading of the offer is this:
The price being offered for Elan depends on what price they buy back the shares for. The higher the buy-back price the less the takeover offer will be. This makes sense as Elan's cash reserve will be depleted more the closer to $13 that they pay.

Of course that all depends on enough shares being tender for the buy back by the elan shareholders. I think they'll get enough as I'd say there's enough investor fatigue at this stage.

The next issue is will Elan accept an offer at this stage. I think they're shaping to sell but not to Royalty Pharma and are hoping for a better price. Today was the deadline for the shareholders to tender. I ended up tendering some of my holding for €12.50 as I've decided I need the money elsewhere. I hadn't originally planned on doing that but at that price I've a 70% gain. I'd be surprised if I get taken up on it though but will let you know. I'm holding onto the rest of my shares indefinately.

Thanks for your input, I would be delighted with a 70% gain ! You obviously see some chance of further price rise, I have been back to evens a few times since original investment circa 2002, only to see them flop again next time i get to even not allowing for inflation etc, I will sell
O

Dubh Geannain

"The offer from Royalty Pharma grossly undervalues Elan's current business platform and our future prospects. As a result the board unanimously and without reservation rejected the offer," Elan chairman Robert Ingram said in a statement.

http://www.rte.ie/news/business/2013/0422/383721-elan-royalty-pharma/

Subsequent 3% jump in Elan share price this morning.

dharn

Dubh Geannain wrote: »

http://www.rte.ie/news/business/2013/0422/383721-elan-royalty-pharma/

Subsequent 3% jump in Elan share price this morning.

Are we the only 2 people on boards with elan shares ?

Dubh Geannain

dharn wrote: »

Are we the only 2 people on boards with elan shares ?

What can I say. It's an exclusive club :cool:

I wouldn't say so though. We may be the only ones that have checked this forum in the last month.

Comordha

I sold out at €8.30 a few months back after the Alzheimer drug tests failed. Happy to be out. Made a profit. It's just a cash house now & I wouldn't trust mgmt finding new early stage drugs to buy into so can't see any result other than a takeout or managment squandering shareholders money. Would be a cautious holder.

Dubh Geannain

Up 4.5% today to €9.90 ($13.10) due to:

Royalty offer $13 per share plus contingent value right

* CVR would offer shareholders upside on sales of MS drug

* Remains conditional on investors rejecting Elan plans

DUBLIN, June 7 (Reuters) - Royalty Pharma raised its hostile bid for Irish drug firm Elan to a potential $8 billion on Friday, after just 7.5 percent of the target company's shareholders accepted its previous offer.

The U.S. investment firm, seeking to get its hands on Elan's lucrative royalties from multiple sclerosis drug Tysabri, has already had two bids rejected by Elan's board in a battle that has turned increasingly bitter.

Royalty is now offering $13 in cash per share - compared with a previous $12.50 - and added a clause known as a contingent value right that could be worth up to $2.50 per share, it said in a statement.

So potentially $15 per share

http://www.reuters.com/article/2013/06/07/royalty-elan-idUSL5N0EJ0GT20130607?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews&rpc=43

Dubh Geannain

No surprise here

Irish drug company Elan puts itself up for sale

DUBLIN (Reuters) - Irish drug company Elan (ELN.I) said on Friday it will start a formal sale process in light of expressions of interest received to date.
Royalty Pharma (ROYPH.UL), which has made a hostile bid of up to $8 billion for Elan, will be invited to participate if it so wishes, Elan said in a statement.
Elan urged its shareholders not to tender into Royalty's current offer.

http://finance.yahoo.com/news/royalty-says-most-elan-shareholders-080740092.html

Currently trading at €10.10