Biotech Values

[DewDiligence]

Speedel is trading at CHF 128.80, a 1% discount to NVS’ CHF 130 buyout price, in midday trading in Zurich:

http://finance.yahoo.com/q?s=SPPN.SW

A very narrow discount—but not a premium—to the deal price makes perfect sense.

The deal has to go through because NVS has contracted with the ex-CEO of Speedel and other Speedel insiders to acquire their shares, giving NVS a majority of the shares outstanding. Under Swiss law, NVS is required to offer all other Speedel shareholders the same terms.

Moreover, the chance is nil that another company will sweeten the offer. NVS is the only company who can realize cost synergies from consolidating all Tekturna activities, including manufacturing, under one roof.


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