Nov. 18, 2013, 7:11 AM
- Elan's (ELN) shareholders have authorized the $8.6B sale of the company to Perrigo (PRGO), clearing the way for the firms to complete the transaction by the end of 2013.
- Perrigo will gain an Irish HQ, and so will enjoy lower taxes, as well as royalties from blockbuster multiple sclerosis drug Tysabri.
Jul. 29, 2013, 3:37 AM
- The bid tops Royalty Pharma's rejected $8B offer for Elan (ELN) from earlier this year
- Perrigo (PRGO) shareholders will receive one share of the new company for each share of Perrigo and $0.01/share in cash.
- The U.S. company's shareholders will own 71% of the combined company and Elan investors 29%
- The combined firm will be incorporated in Ireland, where the tax base is 12.5%. That should reduce Perrigo's tax costs to the high teens from 30%.
- Perrigo expects savings of $150M a year, including from the lower tax rate.
- Perrigo to receive Elan's $1.9B in cash and royalties from sales of the Tysabri multiple sclerosis drug
- Perrigo will fund the deal using $4.35B in bridge financing from Barclays and HSBC plus cash. (previous)
Jul. 29, 2013, 2:31 AM
Jul. 28, 2013, 3:56 PM
- Elan (ELN) may announce a sale of the company as early as Monday.
- Perrigo (PRGO) is the frontrunner, Bloomberg says, citing the ubiquitous "people familiar with the matter," although no final decision has been made.
- Allergan (AGN) and Mylan (MYL) are listed as other possible suitors.
- Previous reports suggested AGN and Forest Labs (FRX) were interested, but MYL and Endo Health (ENDP) were not.
- Luck of the Irish: A U.S.-based acquirer could "re-domicile itself in Ireland, where the rate of corporate income tax is 12.5%."
Jul. 12, 2013, 4:19 PM
Elan (ELN +1.3%) spiked a bit just before the close after Reuters reported Allergan (AGN +1.2%) and Forest Labs (FRX +0.3%) remain interested in the company, which will seek first-round bids next week. Mylan and Endo Health are reportedly no longer interested. Allergan and Forest are said to be considering bids due to Ireland's low corporate tax rates. (previous)| Jul. 12, 2013, 4:19 PM | 3 Comments
Jun. 20, 2013, 4:01 AMForest Laboratories (FRX) is reportedly among several mid-sized pharmaceutical companies that are interested in bidding for Irish drugmaker Elan (ELN). The speculation comes a day after Royalty Pharma gave up in its hostile attempt to acquire Elan for up to $8B. Jefferies analyst Corey Davis says that a deal could help reduce the buyer's tax rate, as Elan is based in Ireland. | Jun. 20, 2013, 4:01 AM
Jun. 18, 2013, 7:55 AM
Jun. 14, 2013, 1:58 PM
Royalty Pharma responds to Elan's (ELN +8.4%) announcement that it intends to explore a sale, saying it's a clearly frustrating tactic that offers shareholders no certainty that a deal will ever be reached. Royalty calls on shareholders to vote today against all four resolutions up for consideration, in order to preserve its formal offer for ELN.| Jun. 14, 2013, 1:58 PM | 2 Comments
Jun. 10, 2013, 3:22 AM
Elan (ELN) has rejected Royalty Pharma's increased bid , saying that the U.S. investment firm still undervalues the Irish company and its Tysabri multiple sclerosis drug. Elan is also analyzing other interest after it received unsolicited corporate enquiries. Royalty Pharma's latest offer could be worth as much as $8B, and comprises $13 a share, up from $12.50 previously, and an extra $2.50 if Tysabri achieves certain sales milestones. (PR: Elan and Royalty Pharma)| Jun. 10, 2013, 3:22 AM
Jun. 7, 2013, 12:57 PM
Deutsche Bank's Richard Parke says that Royalty Pharma's sweetened offer for Elan (ELN +5.5%) looks "compelling," noting that the offer is now well above his $12.1/share NPV and also factors in reward for shareholders if upside to Tysabri consensus forecasts is achieved. Parke thinks the offer significantly increases the probability that Royalty Pharma’s tender will be successful.| Jun. 7, 2013, 12:57 PM
Jun. 7, 2013, 6:53 AM
Jun. 6, 2013, 12:56 PM
An Irish Takeover Panel says Royalty Pharma's deal for Elan didn't meet all requirements. Therefore, it must amend its proxy statement. Additionally, the panel notes that Royalty's offer must lapse if shareholders approve Elan's (ELN -0.4%) bid for Theravance royalties at its upcoming Extraordinary General Meeting on June 17th.| Jun. 6, 2013, 12:56 PM
Jun. 6, 2013, 5:57 AMRoyalty Pharma has extended the deadline for Elan's (ELN) stockholders to tender their shares to the U.S. investment firm until June 21. The move comes two days after a judge issued a temporary restraining order on the firm's hostile $6.4B bid for Elan. A hearing is scheduled for Tuesday next week to consider Elan's request for an injunction. | Jun. 6, 2013, 5:57 AM
Jun. 4, 2013, 2:05 PM
Institutional Shareholder Services is recommending Elan (ELN +0.6%) shareholders vote against several company proposals - including a $1B royalty-sharing agreement with Theravance (THRX -1.5%) and a $200M stock buyback program at ELN's June 17 special meeting. It withholds recommendation on the Royalty all-cash offer however, although it said voting against ELN's proposals "leaves the door open for shareholders to tender their shares if they so wish."| Jun. 4, 2013, 2:05 PM
May 28, 2013, 9:03 AM
Royalty Pharma cuts the acceptance threshold for its $12.50 offer for Elan (ELN) to 50% plus one share from 90% but says it will withdraw its bid if the Irish company's shareholders approve various transactions it intends to carry out as part of a restructuring. Royalty Pharma says Elan possibly struck a $1B deal for Theravance's respiratory collaborations with GlaxoSmithKline "without seeing the unredacted GSK contract, and is thus unaware of the exact language of many provisions of that contract which could reduce value."| May 28, 2013, 9:03 AM
May 23, 2013, 1:25 PM
Elan's (ELN +3%) board has rejected the sweetened takeover bid from Royalty Pharma, saying it "continues to grossly undervalue" the company, with board chairman Robert Ingram adding that it's "no more than an opportunistic attempt to acquire our company at a substantial discount at our shareholders' expense." It urges shareholders to reject the offer, noting also that it's reducing the acceptance threshold to 50% plus one share from 90%.| May 23, 2013, 1:25 PM | 1 Comment