Sarissa Capital formally announces its intention not to tender any of its shares for the $8.50 per share takeover offer of Astex Pharmaceuticals (ASTX -0.4%) by Otsuka Holdings (OTSKF.OB). The activist investors also urge fellow Astex shareholders not to tender their holdings for that price either.
Sarissa calls out Astex management for failing to respond to any of its concerns and instead trying to scare shareholders into voting for the deal by suggesting Otsuka could just up and walk away. "Given the built-in mandatory offer extensions in the Astex-Otsuka transaction agreement that we outlined in our October 2 letter, we don't believe any such 'substantial additional risk' exists. But most importantly, we do not believe that $8.50 is an adequate price."