Jack Haddad's  Instablog

Jack Haddad
Send Message
Jack Haddad
  • Amylin's proxy fight will not be easy for Icahn 0 comments
    May 2, 2009 5:31 AM

    Carl Icahn has most recently been Amylin to sell itself and Eli Lilly has said that it is open to making acquisitions in general, plus has had a historical relationship with Carl Icahn. Lilly also has a relationship with Amylin, as it is a partner selling Amylin's key product Byetta and provides financial support to AMLN. This relationship is likely to deepen as Amylin seeks approval for a new and much improved once a week version of Byetta.

    However, next week's proxy fight is not going to be easy for Ichan.  The tactic might well be called "the banker made me do it" defense. Amylin has in place a "change of control" debt covenant that requires it to pay back an outstanding loan if investors buy a large stake in the company or elect a block of board members. Amylin says it would be forced to pay back a $125 million Bank of America loan if outsiders wrested control of its board, which in turn could force it to default on up to $900 million in debt. That could make Amylin unpalatable as a takeover target.

    But, a near term sale could definitely boost the stock to 25.  At 10/share, it's worth the bet.

Back To Jack Haddad's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers


  • Market technicals: I'm accumulating both QID and DXD as the DOW and nasdaq look tired. We have not been able to surpass 10479.
    Dec 23, 2009
  • Amln: today's pullback is a great entry hedged by writing Jan 12.50 calls. Last week's results of Byetta far exceeded epxectations.
    Dec 23, 2009
  • QID: added more to my core position at 20.48. Nasdaq is topping out and is tiring.
    Dec 11, 2009
More »

Latest Comments

Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.