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reachjo

07/04/20 12:47 PM

#293572 RE: anders2211 #293571

I agree with anders221. MRK has around $10.5 billion cash on hand and I don’t see them doing a buy out in cash. I can’t speak to a stock deal where NWBO stock is converted to MRK. My sense tells me the best route to go would be to do exactly what Roche did with Genentech. Roche initially bought a majority of shares in the GNE (somewhere between 40% to 51%) with the option to buy out the rest later. Roche completed the buyout in 2010 and kept the name Genentech in the US. This allowed Roche to get into GNE at a much lower price and let their shares grow as GNE’s stock exploded. GNE got the operating capital & resources they needed to grow the business, which they certainly did. The other advantage for both is that NWBO can do licensing agreements with other companies much easier than if MRK owned them outright as part of MRK. I would think that would be the most attractive deal to both sides. MRK gets in on the cheap and NWBO stock could grow to breathtaking levels and share holders could see that price per share go into the hundreds. All benefit.