Biotech Values

[DewDiligence]

GTCB buyout musings (from ymb):

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Re: Buyout musings
by: DewDiligence
02/26/06 02:15 pm
Msg: 29094 of 29097

>Pharming doesn't appear to have the cash for a clean buyout.<

I doubt that a buyout would be an all-cash transaction. Pharming presumably wants a listing on a U.S. stock market and GTC has that. Pharming would also want to make use of GTC’s tax losses in the U.S.

A way for Pharming to accomplish both of these objectives is a reverse merger in which GTC would be the surviving entity but Pharming’s shareholders would own more than half of the combined equity. GTC’s shareholders could still get a nice premium under such a transaction.

[Posted as a reply to: Msg 29087 by wjlknew]
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