The private equity firm that invests in royalty streams from pharmaceuticals, Royalty Pharma, had extended the deadline for Elan Corp to respond to its US$6.4 billion offer. The offer is an all cash bid worth US$12.50 per American Depositary Receipt.
The deadline for Elan was set on June 21, 2013 at 8 am, New York Standard Time. The said extension was confirmed by Royalty Pharma through a statement issued today.
Current Elan CEO Kelly Martin together with the board of directors of the company has said to have rejected the offer tendered by Royalty Pharma. Under Martin's leadership, who was a former banker at Merril Lynch & Co., the company has undergone an acquisition spree, the latest being its US$1 billion investment in royalties from Theravance Inc.
Elan shareholders would still have to vote on the Royalty proposal on June 17 and this is pivotal in the determination on whether Royalty would continue with its offer for Elan.
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