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Just a quick reminder to all that Bristol-Myers (BMY) acquired 14.4M shares of Imclone Systems (IMCL) for $70.00 cash back in 2001. The current $60.00 cash offer is $10.00 less and seven years later. Apparently BMY is not ashamed to publicly admit that it overpaid for IMCL shares back in 2001.

There are a ton of analysts throwing around all sorts of numbers as to what fair value should be. For example; Michael King at Rodman & Renshaw pegs it at $72.00 and Yaron Werber at Citigroup comes up with $73.00.

Big deal! Three dollars in seven years does not detract from the fact that BMY overpaid on the first round. In fact, all the analyst's are accomplishing is proving that the original transaction was based on assumptions that did not pan out.

For this reason alone it is fairly safe to say that the $60.00 offer is final and that BMY is in no rush to conclude a deal. IMCL still needs BMY more than BMY needs IMCL.

Disclosure: No conflicts.

 

Source: Imclone Systems: No Shame, No Gain