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MRX is unlikely to get into a bidding

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Investorman Member Level  Wednesday, 11/16/05 11:27:17 AM
Re: DewDiligence post# 124
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MRX is unlikely to get into a bidding war on this one. They don't have the resources. Sooooooo MRX will have to look elsewhere.

Inamed to review Allergan bid
Wednesday November 16, 9:10 am ET

PHILADELPHIA (Reuters) - Inamed Corp. (NasdaqNM:IMDC - News), a maker of wrinkle treatments and breast implants, on Wednesday said a $3.2 billion unsolicited takeover bid by Allergan Inc. could lead to a superior deal to its existing $2.5 billion agreement to be acquired by Medicis Pharmaceutical Corp.

Inamed said it would evaluate the offer from Allergan (NYSE:AGN - News), which makes Botox anti-wrinkle products. It was unclear whether the two companies had begun negotiations for a deal.

Medicis (NYSE:MRX - News), which makes wrinkle treatments and other skin products, could not be immediately reached for comment.

Inamed in March had agreed to be acquired by Medicis for $2.8 billion. The value of that proposal has fallen to $2.5 billion, or $67.93 a share, due to a decline in Medicis' stock price.

The offer from Allergan, meanwhile, values Inamed at $84 per share. Shares of Inamed, based in Santa Barbara, California, closed on Tuesday at $81.28 per share.

Irvine, California-based Allergan contended that its proposal included more cash and could be completed at least as quickly as the rival Medicis deal.

Allergan wants the deal to expand its wrinkle-treatment products, helping it offset competition to Botox, and gain a foothold in the markets for breast implants and obesity treatments.

Allergan is larger and has greater financial clout to battle Medicis, making it unlikely that a bidding war for Inamed would erupt, analysts said.

"I don't think Medicis can counter," said SunTrust Robinson Humphrey analyst Amit Hazan. "Allergan can increase their offer ... I don't think Medicis will get into a bidding war with Allergan."

Last week, Inamed shareholder SAC Capital Advisors blasted the Medicis deal, arguing that the terms did not provide "full and fair value" for Inamed.

Medicis said in a filing late Tuesday that shareholders of record as of November 4 will be allowed to vote on the Inamed proposal.

Medicis also it said submitted substantially all material requested by the U.S. Federal Trade Commission in connection with the deal.

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