Elan Corporation got relief on Monday from courts in two countries that temporarily prevents Royalty Pharma, a US-based investment firm, from continuing its US$6.4 billion bid for the Irish drug company.
Hostile cash offers were made by Royalty for Elan. Elan; however, has rejected offered deals and was relieved after Ireland's High Court restrained Royalty from giving out proxy statement about the bid to its shareholders.
On the other hand, a US federal court judge also granted a temporary restraining order (TRO) late Monday. The temporary restraining order states blocking Royalty from either completing or closing tender deals to Elan's shares.
Elan complains about the disclosure made by Royalty labeling it as materially inadequate. They also presented to a New York court that Elan shareholders were denied of the chance to take a closer evaluation of the said deal. Furthermore, the reduction of the acceptance bar for the bid of 50% plus one from the 90% share will have Royalty raise its prospect of fully taking control of Elan. Restrictions from law; however, delisted the possibility.
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