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Amylin's proxy fight will not be easy for Icahn

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.