Elan Corp PLC (ELN)

[surf1944]

7:09AM Elan: Royalty Pharma submits formal cash offer for Elan; offer price reflects $1 bln Dutch AuctionStrikePrice of $11.25 per Elan share (ELN) 11.60 : Echo Pharma Acquisition issued an offer document dated 2 May 2013. In the Offer Document, Royalty Pharma confirms the Offer Price set forth in its Rule 2.5 Announcement of 15 April. The Offer Price reflects Elan's $1 billion Dutch Auction share repurchase clearing price of $11.25 per Elan Share, the lowest possible price in the range set by the Elan Board. Royalty Pharma believes this clearing price validates Royalty Pharma's earlier statement that the Dutch Auction price range was set artificially high. Of the 22 share repurchases by companies that used a Dutch auction process in the last two years, only Elan's Dutch Auction and one other cleared at the bottom of the range. Eleven of these cleared at the highest price of their respective ranges, eight others cleared at or above the mid-point, and one below the mid-point of their respective ranges.