Replies to post #171810 on Biotech Values

[biomaven0]

>>Sigma Tau did NOT sign the support agreement!

Keeping their powder dry in case another suitor emerges I suppose.

The fact that there isn't much of a premium over the recent price puts this offer on shakier ground than typical.

Peter

[ghmm]

JAZZ / GENT:

Sigma-Tau owns 17%. On the merger call the Webush analyst (who knows the company extremely well) thought the agreement had something in with regards to a takeover and the license expiring after 8 years (from US approval). Also in the filing Sigma-Tau indicated some open business needed to be resolved before executing a support agreement.

JAZZ had secured 15% of the shares (though I believe the figure was low 20's when diluted shares are factored). They need to get 66% of vote (though I believe they can lower it to just a majority). IMO I don't think they can get it passed without getting Sigma-Tau on board. The easy thing would be to negotiate a deal with Sigma-Tau I would hope Sigma-Tau is considering their own bid that may be just wishful thinking on my part :-)