Elan wanted to buy Royalty before turning prey itself
Irish pharma Elan has turned to prey from predator – Elan, now the acquisition target of Royalty, itself wanted to buy the hostile bidder six months ago.
The two companies had been talking to each other about this way of working together until the tables turned and Royalty made a hostile bid for Elan. There have been no discussions since.
The revelations are made in bid documents. Royalty submitted an offer worth $5.7 billion today. This represents a lower price than Elan considers it is worth – the company rejected the $11.25-per-share bid last month.
“At a meeting held on 6 September 2012 between Mr Martin and Mr Legorreta, the parties discussed more specifically ways in which they might be able to work together, including possibly combining their two businesses. One topic that was discussed was Royalty Pharma Management’s potential interest in becoming a public company. The parties noted that an acquisition of Royalty Pharma Management by Elan represented a potential means to that end. At the conclusion of that meeting, the two parties agreed to conduct further analysis of potential business combination strategies and meet again.”
Royalty Pharma offer statement.
Elan’s Dublin share price has fallen on the news of the persisting Royalty bid.
Elan considered buying Royalty Pharma before becoming its target (The Irish Times)
Don't miss your daily pharmaphorum news.
SUBSCRIBE free here.