JohnD

Is Biovail's Founder Exploring Privatization?

Melnyk's "overtures" in 2005 should not be characterized as "similar". As a former CEO of public, NASDAQ listed company I can tell you that the [legal] risks associated with attempting to privatize the company or take control/buyout of the common stock by a member of the board of directors is astronomical. Think of all the people that bought stock at a price above the potential buyout price. There is sure to be a class action lawsuit and the likelihood of the plaintiff succeeding is far greater than if it is done by someone not on the BOD. Therefore, Melnyk's resignation may be the first step in a more serious effort to take control of Biovail.

- John D