In a new development, Onyx (ONXX) confirmed Amgen’s offer in the same release that announced rejecting it. Indeed, Onyx has rejected Amgen’s unsolicited proposal that suggests acquiring Onyx’s outstanding shares and share equivalents for $120 per share in cash, subject to due diligence and other conditions.
Why the rejection?
According to Onyx’ press release, consulting with its financial and legal advisors Onyx Board concluded that Amgen’s proposed offer significantly underestimates the firm’s value and prospects and was not in the best interest of the Company or its shareholders.
It seems that other entities had expressed interest in Onyx, as following Onyx’ decision to reject Amgen’s offer the company’s Board has immediately authorized its financial advisors Centerview Partners, LLC and Goodwin Procter, LLP to contact potential acquirers in order to reach a transaction that would be in the best interest of Onyx shareholders. The firm’s press release hinted to the presence of interested third parties.
On Monday, Onyx’ shareholders will wake up facing the following choices:
- Selling the stock that appreciated by 30% in a couple of minutes on Friday at $109.
- Waiting for a third party offer that might make a higher than the $120 offered by Amgen.
- Waiting in expectation that Amgen might come back with a much better offer.
- Relying on the firm’s estimation of its much higher value and stay with ONXX
Difficult choices we know. It is not easy for shareholders to accept $109 when an offer was made at $120. The other choices are more promising, but are yet to be made. Amgen might indeed come back with another better offer if it is convinced that adding the two firms’ products and investigational pipeline products will, indeed, enhance its growth potential.
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