Astellas (ALPMF.PK) announced that it has submitted a proposal to the Board of Directors of CV Therapeutics to acquire all outstanding common shares of CV Therapeutics for $16.00 per share in cash. The proposal represents a 41% premium to the closing share price of CV Therapeutics on January 26, 2009, and a 69% premium to CV Therapeutics’ 60-day average closing price. The proposal is not subject to any financing condition and represents a total equity value of $1.0 billion on a fully diluted basis.
This proposal was previously submitted to the Board of Directors of CV Therapeutics in a letter dated November 14, 2008 and Astellas was informed on November 21, 2008 that the CV Therapeutics Board had rejected the proposal. CV Therapeutics has subsequently declined to engage Astellas in any meaningful discussions regarding a transaction.
I don’t blame CVT for not jumping at this offer or Astellas for making it. Astellas wants a piece of Ranexa (some people project it’s on pace to top $400M in sales within 5 years) and CV Therapeutics doesn’t want to give it up. Judging by the market’s response (already trading at $17/share in the pre-market).
My best guess, Astellas sweetens the bid to [licks index finger and sticks it above his head]… $21/share