Since February, Pablo Legorreta and Kelly Martin, both executives of two companies have been vying for Elan. The acquisition is said to be the biggest takeover battle this year.
On February 25, a hostile bid was launched by Royalty Pharma's Chief Executive Officer, Legorreta. The formal bid was increased twice to at least US$13 per share or a hefty US$6.7 billion. On the other hand, Elan's CEO Kelly Martin has responded with four other transactions since 2003 as he bills value-creating alternative to the proposed deal. However, Legoretta stated that they only intended to prevent his offer.
On June 13, Legorreta's bid is put at risk of losing the battle as according to the counting of initial shareholder votes by Royalty. Meanwhile, most analysts think that Legorreta's made a fair offer with his proposed bid. According to the two sides, Legorreta met with Martin last September and talked about the possibility of Elan acquiring Royalty. By October, Legorreta told Martin that Royalty was to acquire Elan instead.
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