Biopharmaceutical company Bristol-Myers Squibb Co. (BMY) has agreed to acquire diabetes drug maker Amylin Pharmaceuticals, Inc. (AMLN) for $31 per share in cash for a purchase price of about $5.3 billion, the two companies said Friday.
Including Amylin's net debt and a contractual payment obligation to Eli Lilly & Co. (LLY) that together total about $1.7 billion, the total value of the transaction is about $7 billion. The offer price represents a nearly 10 percent premium to Amylin's closing stock price on Friday of $28.20.
Two thoughts: I think they sold at a low premium just to get rid of Carl Icahn who owned 9% of the stock. Plus, lots of players in this space....2-3 years out, there could be lots more competition.
I would rather own ARIA!!!
